Accounting Question

posted by .

Below are two questions from my accounting class. I am not sure how to approach this kind of problem. Any help or suggestions would be greatly appreciated.

Thanks in advance!

------------------------------

The following trial balance of Trane Corp. at December 31, 2001 has

been properly adjusted except for the income tax expense adjustment.



Trane Corp.

Trial Balance

December 31, 2001

Dr. Cr.

___________ __________

Cash $ 875,000

Accounts receivable (net) 2,695,000

Inventory 2,085,000

Property, plant, and equipment (net) 7,366,000

Accounts payable and accrued liabilities $ 1,501,000

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, 1/1/01 3,650,000

Net sales and other revenues 13,360,000

Costs and expenses 11,080,000

Income tax expenses 1,179,000

___________ ___________

$25,280,000 $25,280,000



Other financial data for the year ended December 31, 2001:

Included in accounts receivable is $960,000 due from a

customer and payable in quarterly installments of $120,000. The last

payment is due December 29, 2003.

The balance in the Deferred Income Tax Liability account

pertains to a temporary difference that arose in a prior year, of

which $20,000 is classified as a current liability.

During the year, estimated tax payments of $425,000 for the year 2002

were charged to income tax expense.



In Trane's December 31, 2001 balance sheet,

14. The current assets total is

a. $6,080,000.

b. $5,655,000.

c. $5,535,000.

d. $5,175,000.



15. The final retained earnings balance is

a. $4,751,000.

b. $4,836,000.

c. $5,176,000.

d. $5,105,000.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. accounting

    List the following steps of the accounting cycle in their proper order a. Preparing the post closing trial balance b. postint the journal entries c. journalizing and posting adjusting entries d. preparing the adjusted trial balance …
  2. accounting

    List the following steps of the accounting cycle in their proper order a. Preparing the post closing trial balance b. postint the journal entries c. journalizing and posting adjusting entries d. preparing the adjusted trial balance …
  3. Accounting question..

    Having trouble figuring out how to do this problem for my accounting homework.. any help would be greatly appreciated..the information given goes as follows.. On 1/1/08 you issue $400,000 of 7%, 10 year bonds that pay intrest semiannually. …
  4. Accounting

    Hello, I am taking an accounting class and the questions states "post to the accounts and keep a running bakance for each account" the question gives a page number to refer to but it does not provide any guidance. What does these means?
  5. accounting

    comprehensive problem perpetual In this project, follow the steps of the accounting cycle to process given transactions in a business environment. Then, synthesize special journals, a trial balance, financial statements, and a post …
  6. Accounting

    I have almost completed my assignment, but am stuck on this question. I researched my text and other outside sources and can't seem to find the answer. Can anyone provide any guidance on this for me?
  7. Accounting

    I know that you cannot answer homework questions directly, but in my accounting class we have to do a financial statement for Arcadia Hospital which is our checkpoint for Axia College of University of Phoenix. I did see previous question …
  8. accounting

    I have answer a hypothetical situation question as to what advice I would give to a business owner whose business in growing on how to make her accounting work more efficient. She manually enters in cash sales daily, makes purchase …
  9. Accounting

    What is the relationship between the amounts on the adjusted trial balance for an account and its ledger?
  10. accounting

    The following are examples of errors that will not be revealed by a trial balance: (a) errors of omission (b) incorrect total on trial balance (c) posting to the wrong account (d) compensating errors (e) The balance of a general ledger …

More Similar Questions