Merelyn Ltd reported a profit before tax for the year to 30 June 2017 of $600...
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Merelyn Ltd reported a profit before tax for the year to 30 June 2017 of $600 000. The company's statements of financial position include assets and liabilities as follows: 2016 2017 Accounts receivable Allowance for doubtful debts $260,000 (S30,000) $200,000 (S15,000) Building - at cost Accumulated depreciation S400,000 ($150,000) $400,000 ($100,000) $60,000 $40,000 $70,000 $60,000 Provision for Warranty Provision for long-service leave $15,000 $40,000 Deferred tax asset Deferred tax liability (a) Expenses included in profit for the year to 30 June 2017 are as follows: Penalties expense Depreciation Expense for Building Doubtful Debts Expense Long-service Leave Expense Warranty Expense $30,000 $50,000 $35,000 $20,000 $10,000 (b) Accumulated depreciation on Building for tax purposes is $300,000 on 30/06/2017 and $200,000 on 30 June 2016. There have been no acquisitions or disposals of building during the current year. (c) The corporate tax rate is 30%. Required: Complete the current tax worksheet and deferred tax worksheets, and prepare the tax entries for 30 June 2017. Workings Accumulated Depreciation- for tax purposes Merelyn Ltd reported a profit before tax for the year to 30 June 2017 of $600 000. The company's statements of financial position include assets and liabilities as follows: 2016 2017 Accounts receivable Allowance for doubtful debts $260,000 (S30,000) $200,000 (S15,000) Building - at cost Accumulated depreciation S400,000 ($150,000) $400,000 ($100,000) $60,000 $40,000 $70,000 $60,000 Provision for Warranty Provision for long-service leave $15,000 $40,000 Deferred tax asset Deferred tax liability (a) Expenses included in profit for the year to 30 June 2017 are as follows: Penalties expense Depreciation Expense for Building Doubtful Debts Expense Long-service Leave Expense Warranty Expense $30,000 $50,000 $35,000 $20,000 $10,000 (b) Accumulated depreciation on Building for tax purposes is $300,000 on 30/06/2017 and $200,000 on 30 June 2016. There have been no acquisitions or disposals of building during the current year. (c) The corporate tax rate is 30%. Required: Complete the current tax worksheet and deferred tax worksheets, and prepare the tax entries for 30 June 2017. Workings Accumulated Depreciation- for tax purposes
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Merelyn Limited Current tax worksheet for the year ended 30 June 2017 Amount Amount Profit as pe... View the full answer
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
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