BUSINESS COLLEGE

The following trial balance of Reese Corp. at December 31, 2017 has been properly adjusted except for the income tax expense adjustment.Reese Corp.Trial BalanceDecember 31, 2017Dr. Cr.Cash $ 875,000 Accounts receivable (net) 2,695,000 Inventory 2,085,000 Property, plant, and equipment (net) 7,566,000 Accounts payable and accrued liabilities $ 1,761,000Income taxes payable 654,000Deferred income tax liability 85,000Common stock 2,350,000Additional paid-in capital 3,680,000Retained earnings, 1/1/17 3,490,000Net sales and other revenues 13,560,000Costs and expenses 11,180,000 Income tax expenses 1,179,000 $25,480,000 $25,480,000Other financial data for the year ended December 31, 2017:• Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2019.• The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability.• During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%.In Reese's December 31, 2017 balance sheet,The current assets total is: ????The current liabilities total is: ????The final retained earnings balance is: ????

Answers

Answer 1
Answer:

Answer:

$5,055,000  TOTAL CURRENT ASSETS  

$2,435,000  TOTAL CURRENT LIABILITIES  

$4,691,000  Retained Earnings  

Explanation:

2017 Balance Sheet

$875,000 Cash

$2,095,000 Accounts Receivable

$2,085,000 Inventories

$5,055,000  TOTAL CURRENT ASSETS  

$7,566,000 Property, plant, and equipment

$600,000 Accounts Receivable

$8,166,000  TOTAL NONCURRENT ASSETS  

$13,221,000  TOTAL ASSETS  

$1,761,000  Accounts Payable  

$20,000  Deferred Income Tax Liability  

$654,000  Income Tax Payable  

$2,435,000  TOTAL CURRENT LIABILITIES  

$65,000  Deferred Income Tax Liability  

$65,000  TOTAL NONCURRENT LIABILITIES  

$2,500,000  TOTAL LIABILITIES  

$2,350,000  Common Stock  

$3,680,000  Paid in Capital  

$4,691,000  Retained Earnings  

$10,721,000  TOTAL EQUITY  

$13,221,000  TOTAL EQUITY + LIABILITIES  

Income Statement 2021

Sales $13.560,000

Cost and Expenses -$11.180,000

Net Income Before Taxes and Int $2.380,000

Interest Expenses -$1.179,000

Net Income Before Taxes $1.201,000

Related Questions

Suppose your boss has asked you to analyze two mutually exclusive projects - Project A and Project B. Both projects require the same investment amount, and the sum of cash inflows of Project A is larger than the sum of cash inflows of Project B. A coworker told you that you do not need to do an NPV analysis of the projects because you already know that Project A will have a larger NPV than Project B. Do you agree with your coworker's statement?a. Yes, Project A will always have the largest NPV, because its cash inflows are greater than Project B's cash inflows.b. No, the NPV calculation will take into account not only the project's cash inflows but also the timing of cash inflows and outflows. Consequently, Project B could have a larger NPV than Project A, even though Project A has larger cash inflows.c. No, the NPV calculation is based on percentage returns. So, the size of the project's cash flows does not affect a project's NPV.
Gabriele enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of 1000, and selling for 962. At this price, this price, the bonds yield 6.6 percent.What must the coupon rate be on the bonds?
Novak Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance1 $15,750 $26,250 $35,0002 15,750 21,000 21,0003 15,750 15,750 12,6004 15,750 10,500 7,5605 15,750 5,250 2,590Total $78,750 $78,750 $78,750Required:a. What is the cost of the asset being depreciated?b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?c. Which method will produce the highest charge to income in Year 1?d. Which method will produce the highest charge to income in Year 4?e. Which method will produce the highest book value for the asset at the end of Year 3?f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?
Which strategy below helps an organization choose its business focus? three generic strategies swot analysis value chain analysis the five forces model?
Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $100,000; Direct labor $75,000; Electricity used in the Factory $25,000; Factory foreperson salary $3,750; and Maintenance of factory machinery $2,000. Alton Company's indirect product costs totaled:

A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price? $17.39 $17.84 $18.29 $18.75 $19.22

Answers

Answer:

$18.29

Explanation:

It is very simple as per the question to calculate the current stock price.

The formula for calculating the Stock price is,

P = D/(r-g)

Hence, we calculate as follows,

Price = 0.75/(0.105-0.064)

Price = 0.75/0.041

Price = $18.29

Good Luck.

A company purchased inventory as follows: 150 units at $10 350 units at $12 The average unit cost for inventory is

Answers

Answer:

the average cost for inventory is $11.40

Explanation:

The computation of the average units for cost is shown below:

= Total purchase ÷ total purchase units

= (150 units × $10 + 350 units × $12) ÷ (150 units + 350 units)

= ($1,500 + $4,200) ÷ (500 units)

= ($5,700) ÷ (500 units)

= $11.40

Hence, the average cost for inventory is $11.40

We simply applied the above formula and the same is to be considered

Geographically dispersed work groups no longer pose additional communication challenges given todays technology.a) true
b) false

Answers

The given statement is False Option(b) is correct.

What are work groups?

A Working group, or working party, is a group of specialists working together to accomplish indicated objectives. The groups are space explicit and center around conversation or action around a particular branch of knowledge.

A working group's presentation is comprised of the singular consequences of all its singular individuals. A group's presentation is comprised of both individual outcomes and aggregate outcomes. In enormous associations, working groups are predominant, and the attention is dependably on individual objectives, execution and accountabilities.

Working group individuals don't get a sense of ownership with results other than their own. Then again, groups require both individual and common responsibility. There is more data sharing, more group conversations and discussions to show up at a group choice The life expectancy of a working group can endure anyplace between a couple of months and quite a long while. Such groups tend to foster a semi extremely durable presence when the relegated task is achieved consequently the need to disband or gradually eliminate the working group when it has accomplished its objective.

Therefore Option(b) is correct.

Learn more about work group here:

brainly.com/question/28044374

#SPJ2
The answer is false

Atom Endeavour Co. issued $17 million face amount of 12.0% bonds when market interest rates were 13.38% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds

Answers

Answer:

$2,040,000

Explanation:

Annual Interest calculation

Interest = Par/Face Value × Coupon Rate

             =  $17,000,000 × 12.0%

             = $2,040,000

Therefore, interest to be paid annually on these bonds is $2,040,000.

In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead costs, $680,000, and direct materials costs, $400,000. At year-end 2017, the company’s records show that actual overhead costs for the year are $897,200. Actual direct material cost had been assigned to jobs as follows.Jobs completed and sold $ 420,000 Jobs in finished goods inventory 76,000 Jobs in work in process inventory 53,000 Total actual direct materials cost $ 549,000 Determine the predetermined overhead rate for 2017.

Answers

Answer:

POAR= 170% of the direct material cost.

Explanation:

Explanation:

The predetermined overhead absorption rate (POAR: The overhead absorption is a rate which is used to charge overheads to production units. Note that this rate is computed using estimated figures

The rate is computed as follows:

Predetermined overhead absorption rate

POAR

= (Budgeted overhead for the period/Budgeted direct material cost)× 100

= $680,000/400,00 ×  100

= 170% of the direct material cost.

Select all that apply.Select the items that describe wants (not needs).
latest laptop
most expensive shoes
extra pair of jeans
water

Answers

Answer:

latest laptop, most expensive shoes, and a extra pair of jeans. these are all things that people want not need. water on the other hand is a basic need.

Explanation:

Answer:

The answer to this question is, Latest Laptop, Most Expensive Shoes, & an extra pair of Jeans.

Explanation:

To live in this world, we will need most necessarily the following:

  • Food
  • Water
  • Shelter

All the other things are not necessary at all. Only the senses are making us to wish for it.
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