Question 1. 20 Marks

Rawson Traders Ltd commenced operations on the 1st of July 2023. He presented its first statement of profit and loss, other comprehensive income, and the first statement of position on the 30th of June 2024. The statements are prepared before considering taxation. The following information is available.

Statement of profit and loss and other comprehensive income for the year ended 30th of June 2024.

$	$
Revenue	1,500,000
Cost of sales	770,000
Gross profit	730,000
Expenses:
Administrative expenses	80,000
Salaries	200,000
Long-Service Leave	20,000
Warranty expenses	30,000
Depreciation expense of Plant	60,000
Insurance	20,000
Total expenses	410,000
Accounting profit before tax	320,000

Assets and liabilities as disclosed in the statement of financial position as at the 30th of June 2024. Assets:	$	$
Cash	20,000
Inventory	100,000
Accounts receivable	120,000
Less: Provision for doubtful debts	20,000	100,000
Prepaid insurance	15,000
Plant Cost	300,000
Less: Accumulated Depreciation	60,000	240,000
Total assets	475,000
Liabilities:
Accounts Payable	80,000
Provision for warranty expenses	25,000
Salaries payable	5,000
Loan payable	200,000
Provision for long service leave expenses	20,000
Total liabilities	330,000
Net assets	145,000

Additional Information:

• All administration and salaries expenses incurred have been paid at year-end.
• None of the long service leave expenses have been paid.
• Warranty expenses were accrued, and at year-end, actual payments of $5,000 have been made.
• Insurance was initially prepaid to $35,000.
• Amounts received from sales, including those on credit terms, are taxed when the sale is made.
• The plant is depreciated over five years for accounting purposes but over four years for taxation purposes.
• The tax rate is 30 per cent.

Required:

1. Calculate the taxable income of Rawson Ltd for the year ending the 30th of June 2024. [5 marks]
2. Journal entry to record the income tax payable for the year ending 30 June 2024. [1marks]
3. A deferred tax worksheet for the 30th of June 2024. [12 marks]
4. The journal entries to record any deferred tax assets and liabilities at 30 June 2024. [2 marks]