The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive...

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The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Oliver Ltd for the year ended 30 June 2021, amounted to $40,000 including the following revenue and expense items. June 2021 $ Interest revenue 4,500 Bad debts expense 6,000 Depreciation expense - plant 7,000 Annual Leave Expense 2,500 Rent Expense 2,000 Fines and Penalties (non-deductible) 500 Government grant (exempt from tax) 9,000 Additional information: a. The deduction for depreciation for tax purposes was $8,000. b. Bad debts written off for the year were $5,500. C. Interest revenue is receivable in advance and is taxed when received. Total cash receipts for interests were $8,500 during the year. d. The annual leave provision was $3,000 the end of the year (the opening balance was $2,000). Rent payments of $3,000 were made during the year. e. f. The tax rate is 30%. Required Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2021. CURRENT TAX WORKSHEET Journal Entry for Current Tax Liability DR CR The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Oliver Ltd for the year ended 30 June 2021, amounted to $40,000 including the following revenue and expense items. June 2021 $ Interest revenue 4,500 Bad debts expense 6,000 Depreciation expense - plant 7,000 Annual Leave Expense 2,500 Rent Expense 2,000 Fines and Penalties (non-deductible) 500 Government grant (exempt from tax) 9,000 Additional information: a. The deduction for depreciation for tax purposes was $8,000. b. Bad debts written off for the year were $5,500. C. Interest revenue is receivable in advance and is taxed when received. Total cash receipts for interests were $8,500 during the year. d. The annual leave provision was $3,000 the end of the year (the opening balance was $2,000). Rent payments of $3,000 were made during the year. e. f. The tax rate is 30%. Required Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2021. CURRENT TAX WORKSHEET Journal Entry for Current Tax Liability DR CR

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Current Tax Worksheet Calculation of Taxable income for the year 2021 Pretax accounting income 40000 ... View the full answer