At year-end, what amount should be reported as total retained earnings?

6. At year-end, what amount should be reported as total noncurrent liabilities?

7. At year-end, what amount should be reported as total shareholders' equity?

 

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Lemon Company provided the following account balances at year-end which had been adjusted except for income tax expense: Cash 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 600,000 3,500,000 1,600,000 700,000 450,000 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%. Lemon Company provided the following account balances at year-end which had been adjusted except for income tax expense: Cash 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 600,000 3,500,000 1,600,000 700,000 450,000 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%.

Answer rating: 100% (QA)

Answer To determine the amounts reported at yearend we need to make some calculations based on the p... View the full answer