Q1: Using the reconciliation process calculate the taxable income and the company's current tax liability as at 30 June 20x2, and show all workings

 

Q2: prepare worksheet to calculate the end of year adjustment to the deferred tax asset and deferred tax liability accouts as at 30 June 20x2, Use the pro forma worksheet provided.

 

Q3: provided all the journal entries for the year ended 30 June 20x2 to account for tax in accordance with AASB 112, Income taxes

Transcribed Image Text:

The profit before tax of Tote Ltd for the year ended 30 June 20x2 is $480 000 and includes the following revenue and expense items: Rent revenue Government grant received Bad debts expense Depreciation expense - plant Long-service leave expense Office supplies expense Entertainment expenses Extracts from the statements of financial position of the company at 30 June 20x2 and 30 June 20x1 showed the following assets and liabilities: TOTE LTD Statement of Financial Position (Extract) as at 30 June Assets Cash c) d) Inventory Accounts receivable Allowance for doubtful debts Office supplies Plant Accumulated depreciation Goodwill Deferred tax asset Liabilities Accounts payable Provision for long service leave Rent received in advance Deferred tax liability Additional information $ $ 20x2 64 000 136 000 400 000 (44 000) 20 000 400 000 (208 000) 56 000 ? 24 000 8 000 48 000 40 000 60 000 12 000 14 400 232 000 80000 20 000 17 20x1 $ 68 000 124 000 384 000 (32 000) 17 600 400 000 (168 000) 56 000 32 400 208 000 60 000 16 000 30 480 a) Entertainment costs are not allowed as tax deductions. The government grant revenue is not assessable for tax purposes. b) Accumulated depreciation of plant for tax purposes was $252 000 at 30 June 20x1, and depreciation for tax purposes for the year ended 30 June 20x2 amounted to $60 000. Office supplies are claimed as a tax deduction when purchased. Purchases of supplies were $14.400. Rent is taxed when received. The tax rate is 30%. The profit before tax of Tote Ltd for the year ended 30 June 20x2 is $480 000 and includes the following revenue and expense items: Rent revenue Government grant received Bad debts expense Depreciation expense - plant Long-service leave expense Office supplies expense Entertainment expenses Extracts from the statements of financial position of the company at 30 June 20x2 and 30 June 20x1 showed the following assets and liabilities: TOTE LTD Statement of Financial Position (Extract) as at 30 June Assets Cash c) d) Inventory Accounts receivable Allowance for doubtful debts Office supplies Plant Accumulated depreciation Goodwill Deferred tax asset Liabilities Accounts payable Provision for long service leave Rent received in advance Deferred tax liability Additional information $ $ 20x2 64 000 136 000 400 000 (44 000) 20 000 400 000 (208 000) 56 000 ? 24 000 8 000 48 000 40 000 60 000 12 000 14 400 232 000 80000 20 000 17 20x1 $ 68 000 124 000 384 000 (32 000) 17 600 400 000 (168 000) 56 000 32 400 208 000 60 000 16 000 30 480 a) Entertainment costs are not allowed as tax deductions. The government grant revenue is not assessable for tax purposes. b) Accumulated depreciation of plant for tax purposes was $252 000 at 30 June 20x1, and depreciation for tax purposes for the year ended 30 June 20x2 amounted to $60 000. Office supplies are claimed as a tax deduction when purchased. Purchases of supplies were $14.400. Rent is taxed when received. The tax rate is 30%.

Answer rating: 100% (QA)

It appears you are looking for assistance with some accounting questions generally related to the calculation of taxable income current tax liability deferred tax adjustments and journal entries accor... View the full answer