Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mint Corp.'s trial balance as of December 31, year 6 is presented below and has been adjusted except for income tax expense. Other financial data

Mint Corp.'s trial balance as of December 31, year 6 is presented below and has been adjusted except for income tax expense. Other financial data for the year ended December 31, year 6, are as follows:

The Mint uses the percentage of completion method to account for long-term construction contracts for financial statement and income tax purposes. All accounts receivable from these contracts are considered collectible within 12 months.

During year 6, estimated tax payments of $450,000 were charged to prepaid taxes. Mint has not recorded an income tax expense. There were no temporary or permanent differences, and the Mint's tax rate is 30%.

Dr.

chrome

Money

$ 600,000

Accounts receivable, net

3,500,000

Costs above billing in long-term contracts

1,600,000

Billing in excess of costs on long-term contracts

$ 700,000

prepaid taxes

450.000

Fixed assets, net

1,480,000

Document payable - non-current

1,620,000

Common actions

750.000

Additional payment in principal

2,000,000

Retained earnings -- unallocated

900,000

Retained earnings -- restricted to notes payable

160.000

Earnings from long-term contracts

6,680,000

Costs and expenses

5,180,000

$12,810,000

$12,810,000



On the Mint's balance sheet for December 31, year 6, what amount should be reported as total current assets?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The total current assets on Mints balance sheet for December 31 year 6 shou... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting in Canada

Authors: Hilton Murray, Herauf Darrell

8th edition

1259087557, 1057317623, 978-1259087554

More Books

Students also viewed these Accounting questions

Question

What is negative goodwill, and how is it accounted for?

Answered: 1 week ago