Use the following information for questions Venus Corp.'s trial balance at December 31, 2014 is properly adjusted except for the income tax expense adjustment. Other financial data for the year ended December 31, 2014: - Included in accounts receivable is $720,000 due from a customer and payable in quarterly instalments of $90,000.The last payment is due December 29, 2016. - The balance in the future income tax liability account relates to a temporary difference that arose in a prior year, of which $30,000 is classified as a current liability. - During the year, estimated tax payments of $465,000 were charged to income tax expense. The current and future tax rate on all types of income is 35 percent.
-In Venus's December 31, 2014 statement of financial position, the final retained earnings balance is
A)$5,551,000.
B)$6,132,000.
C)$5,135,000.
D)$6,016,000.

Question

Use the following information for questions Venus Corp.'s trial balance at December 31, 2014 is properly adjusted except for the income tax expense adjustment.  Other financial data for the year ended December 31, 2014: - Included in accounts receivable is $720,000 due from a customer and payable in quarterly instalments of $90,000.The last payment is due December 29, 2016. - The balance in the future income tax liability account relates to a temporary difference that arose in a prior year, of which $30,000 is classified as a current liability. - During the year, estimated tax payments of $465,000 were charged to income tax expense. The current and future tax rate on all types of income is 35 percent.
-In Venus's December 31, 2014 statement of financial position, the final retained earnings balance is
A)$5,551,000. 
B)$6,132,000. 
C)$5,135,000. 
D)$6,016,000.

Quizplus · Accepted Answer

The final retained earnings balance is calculated by adding net income to the beginning retained earnings and subtracting any dividends paid. The correct balance is $6,132,000.

Use the Following Information for Questions Venus Corp