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Showing posts with label Retained Earnings. Show all posts
Showing posts with label Retained Earnings. Show all posts

Wednesday, February 9, 2011

B Corp income tax expense adjustment

Solution is available here for U$1.50
The following trial balance of B Corp. at December 31, 2007 has been properly adjusted except for the income tax expense adjustment.
B Corp.
Trial Balance
December 31, 2007
                             Dr.                       Cr.
Cash                       $     775,000
Accounts receivable (net)         2,695,000
Inventory 2,085,000
Property, plant, and equipment (net) 7,366,000
Accounts payable and accrued liabilities     $  1,701,000
Income taxes payable                          654,000
Deferred income tax liability                 85,000
Common stock                                   2,350,000
Additional paid-in capital                          3,680,000
Retained earnings, 1/1/04                          3,450,000
Net sales and other revenues                 13,360,000
Costs and expenses 11,180,000
Income tax expenses     1,179,000
                     $25,280,000                   $25,280,000