Lemon Company provided the following account balances at year-end which had been adjusted except for income tax expense: Cash 600,000 Accounts receivable 3,500,000 Cost in excess of billings on long-term contracts Billings in excess of cost on long-term contracts 1,600,000 700,000 Prepaid taxes Property, plant and equipment at carrying amount Note payable - noncurrent Share capital Share premium Retained earnings unappropriated Retained earnings restricted for note payable Earnings from long-term contracts Costs and expenses 450,000 1,510,000 1,620,000 750,000 2,030,000 900,000 160,000 6,680,000 5,180,000 All receivables on long-term contracts are considered to be collectible within 12 months. During the year, estimated tax payments of P450,000 were charged to prepaid taxes. The entity has not recorded income tax expense. The tax rate is 30%.
Lemon Company provided the following account balances at year-end which had been adjusted except for income tax expense: Cash 600,000 Accounts receivable 3,500,000 Cost in excess of billings on long-term contracts Billings in excess of cost on long-term contracts 1,600,000 700,000 Prepaid taxes Property, plant and equipment at carrying amount Note payable - noncurrent Share capital Share premium Retained earnings unappropriated Retained earnings restricted for note payable Earnings from long-term contracts Costs and expenses 450,000 1,510,000 1,620,000 750,000 2,030,000 900,000 160,000 6,680,000 5,180,000 All receivables on long-term contracts are considered to be collectible within 12 months. During the year, estimated tax payments of P450,000 were charged to prepaid taxes. The entity has not recorded income tax expense. The tax rate is 30%.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 2EA: Consider the following accounts and determine if the account is a current liability, a noncurrent...
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Question
1. At year-end, what amount should be reported as total
2.
3.
Transcribed Image Text:Lemon Company provided the following account balances at year-end which had been adjusted except for income tax
expense:
Cash
600,000
3,500,000
1,600,000
Accounts receivable
Cost in excess of billings on long-term contracts
Billings in excess of cost on long-term contracts
Prepaid taxes
Property, plant and equipment at carrying amount
Note payable – noncurrent
Share capital
Share premium
Retained earnings unappropriated
Retained earnings restricted for note payable
Earnings from long-term contracts
Costs and expenses
700,000
450,000
1,510,000
1,620,000
750,000
2,030,000
900,000
160,000
6,680,000
5,180,000
All receivables on long-term contracts are considered to be collectible within 12 months. During the year, estimated tax
payments of P450,000 were charged to prepaid taxes. The entity has not recorded income tax expense. The tax rate is
30%.
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