The trial balance of mint corp. at december 31, year 6, is presented below and has been adjusted except for income tax expense. other financial data for the year ended december 31, year 6, are as follows:
mint uses the percentage-of-completion method to account for long-term construction contracts for financial statement and income tax purposes. all receivables on these contracts are considered to be collectible within 12 months.
during year 6, estimated tax payments of $450,000 were charged to prepaid taxes. mint has not recorded income tax expense. there were no temporary or permanent differences, and mint’s tax rate is 30%.
dr. cr. cash $ 600,000
accounts receivable, net 3,500,000
costs in excess of billings on long-term contracts 1,600,000
billings in excess of costs on long-term contracts $ 700,000
prepaid taxes 450,000
fixed assets, net 1,480,000
note payable -- noncurrent 1,620,000
common stock 750,000
additional paid-in capital 2,000,000
retained earnings -- unappropriated 900,000
retained earnings -- restricted for note payable 160,000
earnings from long-term contracts 6,680,000
costs and expenses 5,180,000
in mint’s december 31, year 6, balance sheet, what amount should be reported as total current assets?
a. $6,150,000
b. $5,000,000
c. $5,450,000
d. $5,700,000

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?