80.2K

Verified Solution

Link Copied!

The following trial balance of Wildhorse Co. at December 31, 2017 has been properly adjusted except for the income tax expense adjustment.

Wildhorse Co. Trial Balance December 31, 2017
		Dr.			Cr.
Cash		$	876500
Accounts receivable (net)			2699000
Inventory			2080000
Property, plant, and equipment (net)			7572000
Accounts payable and accrued liabilities					$	1770000
Income taxes payable						654000
Deferred income tax liability						83000
Common stock						2358000
Additional paid-in capital						3679000
Retained earnings, 1/1/17						3504000
Net sales and other revenues						13558500
Costs and expenses			11190000
Income tax expenses			1189000
			$25606500			$25606500

Other financial data for the year ended December 31, 2017: Included in accounts receivable is $1200000 due from a customer and payable in quarterly installments of $150000. The last payment is due December 29, 2019. The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $21000 is classified as a current liability. During the year, estimated tax payments of $535000 were charged to income tax expense. The current and future tax rate on all types of income is 40%. In Wildhorses December 31, 2017 balance sheet, The current assets total is

Answer & Explanation Solved by verified expert

See Answer