Polis Corp.s trial balance at December 31, 2020 is properly adjusted except for the

income tax expense adjustment.

Polis Corp. Trial Balance December 31, 2020

Cash

Accounts receivable (net)

Inventory

Property, plant, and equipment (net) Accounts payable and accrued liabilities Income taxes payable

Future income tax liability

Common shares

Contributed surplus

Retained earnings, Jan 1, 2020

Net sales and other revenues

Costs and expenses

Income tax expenses

Dr.

$ 337,500

1,447,500 1,192,500 4,183,000

5,040,000 689,500 $12,890,000

Cr.

$990,500 342,000 37,500 1,675,000 1,340,000

2,325,000 6,180,000

$12,890,000

Other financial data for the year ended December 31, 2020:

Included in accounts receivable is $360,000 due from a customer

and payable in quarterly instalments of $45,000. The last payment is due December 29, 2022.

The balance in the future income tax liability account relates to a temporary difference that arose in a prior year, of which $15,000 is classified as a current liability.

During the year, estimated tax payments of $330,000 were charged to income tax expense. The current and future tax rate on all types of income is 35 percent.

8. In Polis December 31, 2020 statement of financial position, the current assets total is a) $2,977,500.

b) $2,797,500.

c) $1,530,000.

d) $2,247,500.

9. In Polis December 31, 2020 statement of financial position, the current liabilities total is

a) $1,217,500.

b) $1,347,500.

c) $1,100,000.

d) $1,057,000.

10. In Polis December 31, 2020 statement of financial position, the final retained earnings balance is

a) $2,775,500.

b) $3,066,000.

c) $2,567,500.

d) $3,008,000.