On 30 June 2023, an extract of the Redfox's statement of financial position prepared for internal...
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On 30 June 2023, an extract of the Redfox's statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information: Assets Cash Inventories Accounts Receivable Less: provision for doubtful debts Plant Less: accumulated depreciation $15,000 42,000 208,000 (13,000) 400,000 (40,000) Liabilities Accounts payable Provision for annual leave Rent Revenue received in advance Bank loan $ 33,000 18,000 7,000 319,600 Additional information: . During the year of 2023 Redfox Ltd made credit sales of $ 1,000,000. It recognised doubtful debts expenses of $5,000 and employee leave expenses of $10,000. • Depreciation of the plant for accounting purposes is 10% (straight-line method), while 20% (straight-line) is used for tax purposes. • The tax rate is 30%. • The Deferred Tax Asset (DTA) and Deferred Tax Liability (DTL) as of 30 June 2022 are $6,500 and $3,400, respectively. Required: (a) Fill out the blanks in the following deferred tax worksheet as at 30 June 2023.. (b) Prepare journal entries for deferred tax asset and deferred tax liability as at 30 June 2023.. Answer here: Part (a) Assets Cash Inventories Accounts Receivable Less: provision for doubtful debts Plant Less: accumulated depreciation Liabilities Accounts payable Provision for annual leave Rent Revenue received in advance Bank loan Carrying Tax amount base 15,000 42,000 208,000 (13,000) 400,000 (40,000) 33,000 18,000 7,000 319,600 Taxable Deductible. temporary temporary differences differences Part (b) Date Account Debit ($) Credit ($) On 30 June 2023, an extract of the Redfox's statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information: Assets Cash Inventories Accounts Receivable Less: provision for doubtful debts Plant Less: accumulated depreciation $15,000 42,000 208,000 (13,000) 400,000 (40,000) Liabilities Accounts payable Provision for annual leave Rent Revenue received in advance Bank loan $ 33,000 18,000 7,000 319,600 Additional information: . During the year of 2023 Redfox Ltd made credit sales of $ 1,000,000. It recognised doubtful debts expenses of $5,000 and employee leave expenses of $10,000. • Depreciation of the plant for accounting purposes is 10% (straight-line method), while 20% (straight-line) is used for tax purposes. • The tax rate is 30%. • The Deferred Tax Asset (DTA) and Deferred Tax Liability (DTL) as of 30 June 2022 are $6,500 and $3,400, respectively. Required: (a) Fill out the blanks in the following deferred tax worksheet as at 30 June 2023.. (b) Prepare journal entries for deferred tax asset and deferred tax liability as at 30 June 2023.. Answer here: Part (a) Assets Cash Inventories Accounts Receivable Less: provision for doubtful debts Plant Less: accumulated depreciation Liabilities Accounts payable Provision for annual leave Rent Revenue received in advance Bank loan Carrying Tax amount base 15,000 42,000 208,000 (13,000) 400,000 (40,000) 33,000 18,000 7,000 319,600 Taxable Deductible. temporary temporary differences differences Part (b) Date Account Debit ($) Credit ($)
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