The following trial balance of Robertson Co. at December 31, 2020 has been adjusted except for income tax expense. Debit Credit Cash P 825,000 Accounts receivable 2,475,000 Prepaid taxes 525,000 Accounts payable P180,000 Share capital 750,000 Share premium 450,000 Retained earnings 945,000 Revenues 5,400,000 Expenses 3,900,000 P7,725,000 PZ.Z725,000 During 2020, estimated tax payments of P525,000 were charged to prepaid taxes. Robertson had not yet recorded income tax expense. There were no differences between fınanc statement and income tax income, and Robertson's tax rate is 35%. Included in accounts receivable is P750,000 due from a customer. Special terms granted to this customer requi payment in equal semi-annual installments of P187,500 every April 1, and October 1. In Robertson's December 31, 2020 statement of financial position, what amount should be reported as total current assets? O P2,925,000 O P3,300,000 O P3,750,000 O P3,375,000

The following trial balance of Robertson Co. at December 31, 2020 has been adjusted except for income tax expense. Debit Credit Cash P 825,000 Accounts receivable 2,475,000 Prepaid taxes 525,000 Accounts payable P180,000 Share capital 750,000 Share premium 450,000 Retained earnings 945,000 Revenues 5,400,000 Expenses 3,900,000 P7,725,000 PZ.Z725,000 During 2020, estimated tax payments of P525,000 were charged to prepaid taxes. Robertson had not yet recorded income tax expense. There were no differences between fınanc statement and income tax income, and Robertson's tax rate is 35%. Included in accounts receivable is P750,000 due from a customer. Special terms granted to this customer requi payment in equal semi-annual installments of P187,500 every April 1, and October 1. In Robertson's December 31, 2020 statement of financial position, what amount should be reported as total current assets? O P2,925,000 O P3,300,000 O P3,750,000 O P3,375,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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