Green Country Limited is a distributor of domestic garden appliances throughout New Zealand and also carries...

  
 
 
 
 

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Green Country Limited is a distributor of domestic garden appliances throughout New Zealand and also carries out a number of other business transactions. Set out below is a list of balances extracted from the adjusted trail balance of the company as at financial year end date 31 March 2019: Accounts with Debit Balances Amount (S) Revaluation Loss Building Depreciation Building Depreciation Plant & Equipment Depreciation Vehicle Impairment Vehicle Purchases 140,000 60.000 190.000 75,000 S000 17024,000 Doubeful Debts 10,000 lad Debts 20.000 40.000 35,000 Audit Fees Donation to religiouas organisations in New Zealand Dividends paid (Net) Interest Expense Expenditure related to Rental of Office Bailding Inventory as at I April 2018 Other Espenses Net Loss Brought Forward-1 April 2018 Provisional Tax 216,000 1S0,000 320,000 250,000 K30,000 14,000 120,000 S0,000 Tax paid on Overseas Income Fringe Benefit Tax Resident Withholding Tax for Dividends roceivod Accommodation provided to an employee as part of remuneration package. Associated Pensons' Remuneration SK000 10,000 36,000 313,000 Use of Money Interest IRD Salaries and Wages (Net) 22.000 IK20,000 450.000 PAYE KiwiSaver Contribations 106,000 ACC Levies 25,000 Bonus, gratuity and retiring allowance te employees Resident Withholding Tax on Contract Income Contract Expenses 43.000 15,000 480,000 Accounts with Credit Balances Interest Income (Net) Amount (S) I8,000 Gain from Revalation of Shares Available for sale Gains from Revaluation of shares Held for trading so0,000 Income 34229.000 Dividend Income (Nen) 144,000 Rental Income of Office Building 240,000 Contract Income 520,000 175,000 Overscas Income Additional Notes: • Income for the year ended 31 March 2019 consists of the following: Sales 23,529.000 Income from trade tie arangement Notel 1,000,000 Gains from sale of shares Note 2 3,000,000 500,000 ieensing agreements receipts Note 3 Land Transactions Note 4 5.500,000 Income in relation to s CWI Income Tax Act 2007 300,000 Income in relation tos CX42 Income Tax Act 2007 400,000 Total 34,229,000 Note 1: Green Country Limited entered into an exclusive arrangement with an Oil Company to only sell its brand of petrol for a period of 10 years, Green Country Limited also undertook that it would not establish a new service station business within five miles of its existing business for a period of five years without also agreeing to sell Shell products. Note 2: Green Country Limited systematically bought and sold shares. There was substantial repetition and turnover in buying and selling the shares Note 3: Green Country Limited entered into a series of "licence agreements" with various companies to supply information and manufacturing data to the companies and agreed to teach their technicians how to grow a new type of KIWI fruit. Note 4: The following land transactions were undertaken by Green Country Limited: Parchased a 30 hectare farm in I July 2013 or 52n S00 amd nald she land to a deveiaper 30 June 20 milion. The local counil reed he land farming o residonnial in wemter 201s. Ahut 22 of the proe a sale renuled from he ming change Parchased 20 acres, containing a house, parpe and hare S for S1.220,000 The land salur portion wa $400 Council approval w ohtained for adiviiof seven acres, nhich wes carried or, and he land h dy sold for S90.0o0 Cants imedved in she mvii amonted to SIS.000 including peofession sericerof planting wark and the escnation fa driwy of pine trees, a busk regemeration prngramne ck pof fencing a si surve the enationfa e nd the planting of trees. The hildings and onr ae of se remaining three acres are aned for the Geen Cy Limited restoration butinen Made improvement costing S0.000 te piece of lad S0.000 that was parckaned i 2000 for s000 The improvement (t minor were made on dugunt 2nd whe land dispased for S.000 in April 20IN TOTAL $5.500,00 · The cost of inventory as at 31 March 2019 is S225,000 and the net realisable value of the inventory is S200,000. • In accordance with the Income Tax Act 2007, Green Country Limited has satisfied the continuity of shareholder test and therefore the company is allowed to carry forward the previous years' loss. The net tax loss brought forward from previous years is $70,000. • The tax depreciation for the year ended 31 march 2019 are as follows: - The annual tax depreciation rate for buildings is 0% - The total tax depreciation for Plant and Equipment is S120,000 - The total tax depreciation for Vehicles is S80,000 • The provisional tax account for year ended 31 March 2019 is as follows: Provisional Tax A/C Date Accounts JAmount Date Account Amount 14/2018 Balance bid 150,000313/2019 Tax Payable 150,000 S/2018 Bank 28/8/2018 Bank 15/1/2019 Bank 40,000 31/3/2009 Balance cd 120.000 40,000 40.000 270.000 220.000 • Details of expenditure related to rental of office building is provided below: 25,000 Rental Agency Commission Apportionment of Repairs and Maintenance 173,000 Apportionment of Insurance Apportionment of rates Apportionment of Building Depreciation JApportionment of interest expense Administration 5,000 9,000 23,000 30,000 35,000 320.000 • An examination of the ledger account, shows that other expenses comprises of the following: Professional and consuhting fees Bank service charges Fines and penalties Entertainment expenses Repairs and Maintenance Loss caused by misappropriation by employees Expenses in relation to s CWI Income Tax Act 2007 150,00 Expenses in relation to s CX42 Income Tax Act 2007250,000 40,000 10,000 11,000 25,000 240,000 5,00 Insurance 40.000 59.000 830.000 Rates · Entertainment expenses Entertainment that promotes basiness where the pablic has the same acces as the ssos employees, business contacts and people associated with the business Freebies given to customers promoting business Meals employees bought while travelling on business Snacks and drinks served at busines's trade display Overseas entertainment provided to promote the company's products Entertainment at sports and cultural events (including in a corporate box) Bottles of wine peuvided tu cach customer who buys a company's product amounting to more than S1,000 Boar hire and providing food and drinks to people on it Food and drink providod for social events in an arca set aside for semior employees 1,150 $1,490 S1.978 SL16 S12.217 S1,703 S460 4,001 Total S25,000 Required: Prepare the Financial Statements Summary (Extract of IR10: all boxes until box 29) for year ended 31 March 2019 for Green Country Limited Green Country Limited is a distributor of domestic garden appliances throughout New Zealand and also carries out a number of other business transactions. Set out below is a list of balances extracted from the adjusted trail balance of the company as at financial year end date 31 March 2019: Accounts with Debit Balances Amount (S) Revaluation Loss Building Depreciation Building Depreciation Plant & Equipment Depreciation Vehicle Impairment Vehicle Purchases 140,000 60.000 190.000 75,000 S000 17024,000 Doubeful Debts 10,000 lad Debts 20.000 40.000 35,000 Audit Fees Donation to religiouas organisations in New Zealand Dividends paid (Net) Interest Expense Expenditure related to Rental of Office Bailding Inventory as at I April 2018 Other Espenses Net Loss Brought Forward-1 April 2018 Provisional Tax 216,000 1S0,000 320,000 250,000 K30,000 14,000 120,000 S0,000 Tax paid on Overseas Income Fringe Benefit Tax Resident Withholding Tax for Dividends roceivod Accommodation provided to an employee as part of remuneration package. Associated Pensons' Remuneration SK000 10,000 36,000 313,000 Use of Money Interest IRD Salaries and Wages (Net) 22.000 IK20,000 450.000 PAYE KiwiSaver Contribations 106,000 ACC Levies 25,000 Bonus, gratuity and retiring allowance te employees Resident Withholding Tax on Contract Income Contract Expenses 43.000 15,000 480,000 Accounts with Credit Balances Interest Income (Net) Amount (S) I8,000 Gain from Revalation of Shares Available for sale Gains from Revaluation of shares Held for trading so0,000 Income 34229.000 Dividend Income (Nen) 144,000 Rental Income of Office Building 240,000 Contract Income 520,000 175,000 Overscas Income Additional Notes: • Income for the year ended 31 March 2019 consists of the following: Sales 23,529.000 Income from trade tie arangement Notel 1,000,000 Gains from sale of shares Note 2 3,000,000 500,000 ieensing agreements receipts Note 3 Land Transactions Note 4 5.500,000 Income in relation to s CWI Income Tax Act 2007 300,000 Income in relation tos CX42 Income Tax Act 2007 400,000 Total 34,229,000 Note 1: Green Country Limited entered into an exclusive arrangement with an Oil Company to only sell its brand of petrol for a period of 10 years, Green Country Limited also undertook that it would not establish a new service station business within five miles of its existing business for a period of five years without also agreeing to sell Shell products. Note 2: Green Country Limited systematically bought and sold shares. There was substantial repetition and turnover in buying and selling the shares Note 3: Green Country Limited entered into a series of "licence agreements" with various companies to supply information and manufacturing data to the companies and agreed to teach their technicians how to grow a new type of KIWI fruit. Note 4: The following land transactions were undertaken by Green Country Limited: Parchased a 30 hectare farm in I July 2013 or 52n S00 amd nald she land to a deveiaper 30 June 20 milion. The local counil reed he land farming o residonnial in wemter 201s. Ahut 22 of the proe a sale renuled from he ming change Parchased 20 acres, containing a house, parpe and hare S for S1.220,000 The land salur portion wa $400 Council approval w ohtained for adiviiof seven acres, nhich wes carried or, and he land h dy sold for S90.0o0 Cants imedved in she mvii amonted to SIS.000 including peofession sericerof planting wark and the escnation fa driwy of pine trees, a busk regemeration prngramne ck pof fencing a si surve the enationfa e nd the planting of trees. The hildings and onr ae of se remaining three acres are aned for the Geen Cy Limited restoration butinen Made improvement costing S0.000 te piece of lad S0.000 that was parckaned i 2000 for s000 The improvement (t minor were made on dugunt 2nd whe land dispased for S.000 in April 20IN TOTAL $5.500,00 · The cost of inventory as at 31 March 2019 is S225,000 and the net realisable value of the inventory is S200,000. • In accordance with the Income Tax Act 2007, Green Country Limited has satisfied the continuity of shareholder test and therefore the company is allowed to carry forward the previous years' loss. The net tax loss brought forward from previous years is $70,000. • The tax depreciation for the year ended 31 march 2019 are as follows: - The annual tax depreciation rate for buildings is 0% - The total tax depreciation for Plant and Equipment is S120,000 - The total tax depreciation for Vehicles is S80,000 • The provisional tax account for year ended 31 March 2019 is as follows: Provisional Tax A/C Date Accounts JAmount Date Account Amount 14/2018 Balance bid 150,000313/2019 Tax Payable 150,000 S/2018 Bank 28/8/2018 Bank 15/1/2019 Bank 40,000 31/3/2009 Balance cd 120.000 40,000 40.000 270.000 220.000 • Details of expenditure related to rental of office building is provided below: 25,000 Rental Agency Commission Apportionment of Repairs and Maintenance 173,000 Apportionment of Insurance Apportionment of rates Apportionment of Building Depreciation JApportionment of interest expense Administration 5,000 9,000 23,000 30,000 35,000 320.000 • An examination of the ledger account, shows that other expenses comprises of the following: Professional and consuhting fees Bank service charges Fines and penalties Entertainment expenses Repairs and Maintenance Loss caused by misappropriation by employees Expenses in relation to s CWI Income Tax Act 2007 150,00 Expenses in relation to s CX42 Income Tax Act 2007250,000 40,000 10,000 11,000 25,000 240,000 5,00 Insurance 40.000 59.000 830.000 Rates · Entertainment expenses Entertainment that promotes basiness where the pablic has the same acces as the ssos employees, business contacts and people associated with the business Freebies given to customers promoting business Meals employees bought while travelling on business Snacks and drinks served at busines's trade display Overseas entertainment provided to promote the company's products Entertainment at sports and cultural events (including in a corporate box) Bottles of wine peuvided tu cach customer who buys a company's product amounting to more than S1,000 Boar hire and providing food and drinks to people on it Food and drink providod for social events in an arca set aside for semior employees 1,150 $1,490 S1.978 SL16 S12.217 S1,703 S460 4,001 Total S25,000 Required: Prepare the Financial Statements Summary (Extract of IR10: all boxes until box 29) for year ended 31 March 2019 for Green Country Limited Green Country Limited is a distributor of domestic garden appliances throughout New Zealand and also carries out a number of other business transactions. Set out below is a list of balances extracted from the adjusted trail balance of the company as at financial year end date 31 March 2019: Accounts with Debit Balances Amount (S) Revaluation Loss Building Depreciation Building Depreciation Plant & Equipment Depreciation Vehicle Impairment Vehicle Purchases 140,000 60.000 190.000 75,000 S000 17024,000 Doubeful Debts 10,000 lad Debts 20.000 40.000 35,000 Audit Fees Donation to religiouas organisations in New Zealand Dividends paid (Net) Interest Expense Expenditure related to Rental of Office Bailding Inventory as at I April 2018 Other Espenses Net Loss Brought Forward-1 April 2018 Provisional Tax 216,000 1S0,000 320,000 250,000 K30,000 14,000 120,000 S0,000 Tax paid on Overseas Income Fringe Benefit Tax Resident Withholding Tax for Dividends roceivod Accommodation provided to an employee as part of remuneration package. Associated Pensons' Remuneration SK000 10,000 36,000 313,000 Use of Money Interest IRD Salaries and Wages (Net) 22.000 IK20,000 450.000 PAYE KiwiSaver Contribations 106,000 ACC Levies 25,000 Bonus, gratuity and retiring allowance te employees Resident Withholding Tax on Contract Income Contract Expenses 43.000 15,000 480,000 Accounts with Credit Balances Interest Income (Net) Amount (S) I8,000 Gain from Revalation of Shares Available for sale Gains from Revaluation of shares Held for trading so0,000 Income 34229.000 Dividend Income (Nen) 144,000 Rental Income of Office Building 240,000 Contract Income 520,000 175,000 Overscas Income Additional Notes: • Income for the year ended 31 March 2019 consists of the following: Sales 23,529.000 Income from trade tie arangement Notel 1,000,000 Gains from sale of shares Note 2 3,000,000 500,000 ieensing agreements receipts Note 3 Land Transactions Note 4 5.500,000 Income in relation to s CWI Income Tax Act 2007 300,000 Income in relation tos CX42 Income Tax Act 2007 400,000 Total 34,229,000 Note 1: Green Country Limited entered into an exclusive arrangement with an Oil Company to only sell its brand of petrol for a period of 10 years, Green Country Limited also undertook that it would not establish a new service station business within five miles of its existing business for a period of five years without also agreeing to sell Shell products. Note 2: Green Country Limited systematically bought and sold shares. There was substantial repetition and turnover in buying and selling the shares Note 3: Green Country Limited entered into a series of "licence agreements" with various companies to supply information and manufacturing data to the companies and agreed to teach their technicians how to grow a new type of KIWI fruit. Note 4: The following land transactions were undertaken by Green Country Limited: Parchased a 30 hectare farm in I July 2013 or 52n S00 amd nald she land to a deveiaper 30 June 20 milion. The local counil reed he land farming o residonnial in wemter 201s. Ahut 22 of the proe a sale renuled from he ming change Parchased 20 acres, containing a house, parpe and hare S for S1.220,000 The land salur portion wa $400 Council approval w ohtained for adiviiof seven acres, nhich wes carried or, and he land h dy sold for S90.0o0 Cants imedved in she mvii amonted to SIS.000 including peofession sericerof planting wark and the escnation fa driwy of pine trees, a busk regemeration prngramne ck pof fencing a si surve the enationfa e nd the planting of trees. The hildings and onr ae of se remaining three acres are aned for the Geen Cy Limited restoration butinen Made improvement costing S0.000 te piece of lad S0.000 that was parckaned i 2000 for s000 The improvement (t minor were made on dugunt 2nd whe land dispased for S.000 in April 20IN TOTAL $5.500,00 · The cost of inventory as at 31 March 2019 is S225,000 and the net realisable value of the inventory is S200,000. • In accordance with the Income Tax Act 2007, Green Country Limited has satisfied the continuity of shareholder test and therefore the company is allowed to carry forward the previous years' loss. The net tax loss brought forward from previous years is $70,000. • The tax depreciation for the year ended 31 march 2019 are as follows: - The annual tax depreciation rate for buildings is 0% - The total tax depreciation for Plant and Equipment is S120,000 - The total tax depreciation for Vehicles is S80,000 • The provisional tax account for year ended 31 March 2019 is as follows: Provisional Tax A/C Date Accounts JAmount Date Account Amount 14/2018 Balance bid 150,000313/2019 Tax Payable 150,000 S/2018 Bank 28/8/2018 Bank 15/1/2019 Bank 40,000 31/3/2009 Balance cd 120.000 40,000 40.000 270.000 220.000 • Details of expenditure related to rental of office building is provided below: 25,000 Rental Agency Commission Apportionment of Repairs and Maintenance 173,000 Apportionment of Insurance Apportionment of rates Apportionment of Building Depreciation JApportionment of interest expense Administration 5,000 9,000 23,000 30,000 35,000 320.000 • An examination of the ledger account, shows that other expenses comprises of the following: Professional and consuhting fees Bank service charges Fines and penalties Entertainment expenses Repairs and Maintenance Loss caused by misappropriation by employees Expenses in relation to s CWI Income Tax Act 2007 150,00 Expenses in relation to s CX42 Income Tax Act 2007250,000 40,000 10,000 11,000 25,000 240,000 5,00 Insurance 40.000 59.000 830.000 Rates · Entertainment expenses Entertainment that promotes basiness where the pablic has the same acces as the ssos employees, business contacts and people associated with the business Freebies given to customers promoting business Meals employees bought while travelling on business Snacks and drinks served at busines's trade display Overseas entertainment provided to promote the company's products Entertainment at sports and cultural events (including in a corporate box) Bottles of wine peuvided tu cach customer who buys a company's product amounting to more than S1,000 Boar hire and providing food and drinks to people on it Food and drink providod for social events in an arca set aside for semior employees 1,150 $1,490 S1.978 SL16 S12.217 S1,703 S460 4,001 Total S25,000 Required: Prepare the Financial Statements Summary (Extract of IR10: all boxes until box 29) for year ended 31 March 2019 for Green Country Limited Green Country Limited is a distributor of domestic garden appliances throughout New Zealand and also carries out a number of other business transactions. Set out below is a list of balances extracted from the adjusted trail balance of the company as at financial year end date 31 March 2019: Accounts with Debit Balances Amount (S) Revaluation Loss Building Depreciation Building Depreciation Plant & Equipment Depreciation Vehicle Impairment Vehicle Purchases 140,000 60.000 190.000 75,000 S000 17024,000 Doubeful Debts 10,000 lad Debts 20.000 40.000 35,000 Audit Fees Donation to religiouas organisations in New Zealand Dividends paid (Net) Interest Expense Expenditure related to Rental of Office Bailding Inventory as at I April 2018 Other Espenses Net Loss Brought Forward-1 April 2018 Provisional Tax 216,000 1S0,000 320,000 250,000 K30,000 14,000 120,000 S0,000 Tax paid on Overseas Income Fringe Benefit Tax Resident Withholding Tax for Dividends roceivod Accommodation provided to an employee as part of remuneration package. Associated Pensons' Remuneration SK000 10,000 36,000 313,000 Use of Money Interest IRD Salaries and Wages (Net) 22.000 IK20,000 450.000 PAYE KiwiSaver Contribations 106,000 ACC Levies 25,000 Bonus, gratuity and retiring allowance te employees Resident Withholding Tax on Contract Income Contract Expenses 43.000 15,000 480,000 Accounts with Credit Balances Interest Income (Net) Amount (S) I8,000 Gain from Revalation of Shares Available for sale Gains from Revaluation of shares Held for trading so0,000 Income 34229.000 Dividend Income (Nen) 144,000 Rental Income of Office Building 240,000 Contract Income 520,000 175,000 Overscas Income Additional Notes: • Income for the year ended 31 March 2019 consists of the following: Sales 23,529.000 Income from trade tie arangement Notel 1,000,000 Gains from sale of shares Note 2 3,000,000 500,000 ieensing agreements receipts Note 3 Land Transactions Note 4 5.500,000 Income in relation to s CWI Income Tax Act 2007 300,000 Income in relation tos CX42 Income Tax Act 2007 400,000 Total 34,229,000 Note 1: Green Country Limited entered into an exclusive arrangement with an Oil Company to only sell its brand of petrol for a period of 10 years, Green Country Limited also undertook that it would not establish a new service station business within five miles of its existing business for a period of five years without also agreeing to sell Shell products. Note 2: Green Country Limited systematically bought and sold shares. There was substantial repetition and turnover in buying and selling the shares Note 3: Green Country Limited entered into a series of "licence agreements" with various companies to supply information and manufacturing data to the companies and agreed to teach their technicians how to grow a new type of KIWI fruit. Note 4: The following land transactions were undertaken by Green Country Limited: Parchased a 30 hectare farm in I July 2013 or 52n S00 amd nald she land to a deveiaper 30 June 20 milion. The local counil reed he land farming o residonnial in wemter 201s. Ahut 22 of the proe a sale renuled from he ming change Parchased 20 acres, containing a house, parpe and hare S for S1.220,000 The land salur portion wa $400 Council approval w ohtained for adiviiof seven acres, nhich wes carried or, and he land h dy sold for S90.0o0 Cants imedved in she mvii amonted to SIS.000 including peofession sericerof planting wark and the escnation fa driwy of pine trees, a busk regemeration prngramne ck pof fencing a si surve the enationfa e nd the planting of trees. The hildings and onr ae of se remaining three acres are aned for the Geen Cy Limited restoration butinen Made improvement costing S0.000 te piece of lad S0.000 that was parckaned i 2000 for s000 The improvement (t minor were made on dugunt 2nd whe land dispased for S.000 in April 20IN TOTAL $5.500,00 · The cost of inventory as at 31 March 2019 is S225,000 and the net realisable value of the inventory is S200,000. • In accordance with the Income Tax Act 2007, Green Country Limited has satisfied the continuity of shareholder test and therefore the company is allowed to carry forward the previous years' loss. The net tax loss brought forward from previous years is $70,000. • The tax depreciation for the year ended 31 march 2019 are as follows: - The annual tax depreciation rate for buildings is 0% - The total tax depreciation for Plant and Equipment is S120,000 - The total tax depreciation for Vehicles is S80,000 • The provisional tax account for year ended 31 March 2019 is as follows: Provisional Tax A/C Date Accounts JAmount Date Account Amount 14/2018 Balance bid 150,000313/2019 Tax Payable 150,000 S/2018 Bank 28/8/2018 Bank 15/1/2019 Bank 40,000 31/3/2009 Balance cd 120.000 40,000 40.000 270.000 220.000 • Details of expenditure related to rental of office building is provided below: 25,000 Rental Agency Commission Apportionment of Repairs and Maintenance 173,000 Apportionment of Insurance Apportionment of rates Apportionment of Building Depreciation JApportionment of interest expense Administration 5,000 9,000 23,000 30,000 35,000 320.000 • An examination of the ledger account, shows that other expenses comprises of the following: Professional and consuhting fees Bank service charges Fines and penalties Entertainment expenses Repairs and Maintenance Loss caused by misappropriation by employees Expenses in relation to s CWI Income Tax Act 2007 150,00 Expenses in relation to s CX42 Income Tax Act 2007250,000 40,000 10,000 11,000 25,000 240,000 5,00 Insurance 40.000 59.000 830.000 Rates · Entertainment expenses Entertainment that promotes basiness where the pablic has the same acces as the ssos employees, business contacts and people associated with the business Freebies given to customers promoting business Meals employees bought while travelling on business Snacks and drinks served at busines's trade display Overseas entertainment provided to promote the company's products Entertainment at sports and cultural events (including in a corporate box) Bottles of wine peuvided tu cach customer who buys a company's product amounting to more than S1,000 Boar hire and providing food and drinks to people on it Food and drink providod for social events in an arca set aside for semior employees 1,150 $1,490 S1.978 SL16 S12.217 S1,703 S460 4,001 Total S25,000 Required: Prepare the Financial Statements Summary (Extract of IR10: all boxes until box 29) for year ended 31 March 2019 for Green Country Limited