The financial statements of Glade Ltd for the year ended 30 June 2022 show a profit...

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The financial statements of Glade Ltd for the year ended 30 June 2022 show a profit before tax of $220,500, including the following items of income and expense: Fines and penalties Impairment of goodwill Depreciation expense - plant Bad debts expense Warranty expense Insurance expense Rent revenue 3,200 10,500 50,000 5,600 9,500 6,000 12,600 Additional Information: (a) The balance of the Allowance for Doubtful Debts account at 30 June 2021 was $9,800, and at 30 June 2022 the balance in the account was $12,200. (b) The balance of the Provision for Warranties account at 30 June 2021 was $12,000, and at 30 June 2022 the balance in the account was $14,500. (c) The balance of the Prepaid Insurance account at 30 June 2021 was $5,500, and the balance in the account at 30 June 2022 was $8,000. (d) The balance of the Rent Received in Advance account at 30 June 2021 was $16,000, and the balance in the account at 30 June 2022 was $12,500. (e) Plant was purchased on 1 July 2021 at a cost of $400,000. Plant is depreciated over eight years for accounting purposes. The depreciation rate for tax purposes for this type of plant is 25%. (f) For the year ending 30 June 2021, Spartan Ltd recorded a carry-forward tax loss of $16,000. Spartan Ltd had an expectation of future profits. (g) The corporate tax rate is 30%. Required Prepare the complete current tax worksheet, and the applicable current tax journal entries required by Glade Ltd, for the year ended 30 June 2022. Show all workings and calculations. The financial statements of Glade Ltd for the year ended 30 June 2022 show a profit before tax of $220,500, including the following items of income and expense: Fines and penalties Impairment of goodwill Depreciation expense - plant Bad debts expense Warranty expense Insurance expense Rent revenue 3,200 10,500 50,000 5,600 9,500 6,000 12,600 Additional Information: (a) The balance of the Allowance for Doubtful Debts account at 30 June 2021 was $9,800, and at 30 June 2022 the balance in the account was $12,200. (b) The balance of the Provision for Warranties account at 30 June 2021 was $12,000, and at 30 June 2022 the balance in the account was $14,500. (c) The balance of the Prepaid Insurance account at 30 June 2021 was $5,500, and the balance in the account at 30 June 2022 was $8,000. (d) The balance of the Rent Received in Advance account at 30 June 2021 was $16,000, and the balance in the account at 30 June 2022 was $12,500. (e) Plant was purchased on 1 July 2021 at a cost of $400,000. Plant is depreciated over eight years for accounting purposes. The depreciation rate for tax purposes for this type of plant is 25%. (f) For the year ending 30 June 2021, Spartan Ltd recorded a carry-forward tax loss of $16,000. Spartan Ltd had an expectation of future profits. (g) The corporate tax rate is 30%. Required Prepare the complete current tax worksheet, and the applicable current tax journal entries required by Glade Ltd, for the year ended 30 June 2022. Show all workings and calculations.

Answer rating: 100% (QA)

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