V Ltd was established on 1 July 2018 with share capital of $132 000. One year...
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V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of comprehensive income for the year ended 30 June 2019 Sales revenue 650 000 Interest revenue Dividend revenue 500 300 Exempt income Capital profit on sale of land 400 700 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave 175 000 5 900 100 300 120 000 1 800 Rent of premises Insurance 72 000 1 200 Entertainment 400 Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 100 200 600 200 194 100 571 900 80 000 Statement of Financial Position as at 30June 2019 Assets Cash 24 000 Accounts Receivable Less: Allowance for doubtful debts 37 500 200 37 300 Interest receivable 100 Inventory Prepaid insurance Machinery (cost) Less: Accumulated depreciation Vehicles 20 000 300 79 000 5 900 73 100 11 000 Less: Accumulated depreciation Goodwill 100 45 000 300 10 900 Less: Accumulated impaiment loss Investments 44 700 25 000 Total assets 235 400 Liabilities Accounts payable Rent payable Provision for annual leave 15 000 6 000 1 800 600 23 400 212 000 Provision for services warranties Total liabilities Net Assets Shareholders' equity Share capital Retained earnings 132 000 80 000 212 000 Other information: • For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019. • Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. • V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019. • Service warranty expense is only deductible as a tax deduction when claimed by customers. • The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the joumal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019 (5 marks) V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of comprehensive income for the year ended 30 June 2019 Sales revenue 650 000 Interest revenue Dividend revenue 500 300 Exempt income Capital profit on sale of land 400 700 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave 175 000 5 900 100 300 120 000 1 800 Rent of premises Insurance 72 000 1 200 Entertainment 400 Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 100 200 600 200 194 100 571 900 80 000 Statement of Financial Position as at 30June 2019 Assets Cash 24 000 Accounts Receivable Less: Allowance for doubtful debts 37 500 200 37 300 Interest receivable 100 Inventory Prepaid insurance Machinery (cost) Less: Accumulated depreciation Vehicles 20 000 300 79 000 5 900 73 100 11 000 Less: Accumulated depreciation Goodwill 100 45 000 300 10 900 Less: Accumulated impaiment loss Investments 44 700 25 000 Total assets 235 400 Liabilities Accounts payable Rent payable Provision for annual leave 15 000 6 000 1 800 600 23 400 212 000 Provision for services warranties Total liabilities Net Assets Shareholders' equity Share capital Retained earnings 132 000 80 000 212 000 Other information: • For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019. • Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. • V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019. • Service warranty expense is only deductible as a tax deduction when claimed by customers. • The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the joumal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019 (5 marks) V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of comprehensive income for the year ended 30 June 2019 Sales revenue 650 000 Interest revenue Dividend revenue 500 300 Exempt income Capital profit on sale of land 400 700 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave 175 000 5 900 100 300 120 000 1 800 Rent of premises Insurance 72 000 1 200 Entertainment 400 Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 100 200 600 200 194 100 571 900 80 000 Statement of Financial Position as at 30June 2019 Assets Cash 24 000 Accounts Receivable Less: Allowance for doubtful debts 37 500 200 37 300 Interest receivable 100 Inventory Prepaid insurance Machinery (cost) Less: Accumulated depreciation Vehicles 20 000 300 79 000 5 900 73 100 11 000 Less: Accumulated depreciation Goodwill 100 45 000 300 10 900 Less: Accumulated impaiment loss Investments 44 700 25 000 Total assets 235 400 Liabilities Accounts payable Rent payable Provision for annual leave 15 000 6 000 1 800 600 23 400 212 000 Provision for services warranties Total liabilities Net Assets Shareholders' equity Share capital Retained earnings 132 000 80 000 212 000 Other information: • For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019. • Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. • V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019. • Service warranty expense is only deductible as a tax deduction when claimed by customers. • The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the joumal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019 (5 marks) V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of comprehensive income for the year ended 30 June 2019 Sales revenue 650 000 Interest revenue Dividend revenue 500 300 Exempt income Capital profit on sale of land 400 700 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave 175 000 5 900 100 300 120 000 1 800 Rent of premises Insurance 72 000 1 200 Entertainment 400 Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 100 200 600 200 194 100 571 900 80 000 Statement of Financial Position as at 30June 2019 Assets Cash 24 000 Accounts Receivable Less: Allowance for doubtful debts 37 500 200 37 300 Interest receivable 100 Inventory Prepaid insurance Machinery (cost) Less: Accumulated depreciation Vehicles 20 000 300 79 000 5 900 73 100 11 000 Less: Accumulated depreciation Goodwill 100 45 000 300 10 900 Less: Accumulated impaiment loss Investments 44 700 25 000 Total assets 235 400 Liabilities Accounts payable Rent payable Provision for annual leave 15 000 6 000 1 800 600 23 400 212 000 Provision for services warranties Total liabilities Net Assets Shareholders' equity Share capital Retained earnings 132 000 80 000 212 000 Other information: • For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019. • Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. • V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019. • Service warranty expense is only deductible as a tax deduction when claimed by customers. • The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the joumal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019 (5 marks) V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of comprehensive income for the year ended 30 June 2019 Sales revenue 650 000 Interest revenue Dividend revenue 500 300 Exempt income Capital profit on sale of land 400 700 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave 175 000 5 900 100 300 120 000 1 800 Rent of premises Insurance 72 000 1 200 Entertainment 400 Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 100 200 600 200 194 100 571 900 80 000 Statement of Financial Position as at 30June 2019 Assets Cash 24 000 Accounts Receivable Less: Allowance for doubtful debts 37 500 200 37 300 Interest receivable 100 Inventory Prepaid insurance Machinery (cost) Less: Accumulated depreciation Vehicles 20 000 300 79 000 5 900 73 100 11 000 Less: Accumulated depreciation Goodwill 100 45 000 300 10 900 Less: Accumulated impaiment loss Investments 44 700 25 000 Total assets 235 400 Liabilities Accounts payable Rent payable Provision for annual leave 15 000 6 000 1 800 600 23 400 212 000 Provision for services warranties Total liabilities Net Assets Shareholders' equity Share capital Retained earnings 132 000 80 000 212 000 Other information: • For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019. • Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. • V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019. • Service warranty expense is only deductible as a tax deduction when claimed by customers. • The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the joumal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019 (5 marks) V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of comprehensive income for the year ended 30 June 2019 Sales revenue 650 000 Interest revenue Dividend revenue 500 300 Exempt income Capital profit on sale of land 400 700 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave 175 000 5 900 100 300 120 000 1 800 Rent of premises Insurance 72 000 1 200 Entertainment 400 Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 100 200 600 200 194 100 571 900 80 000 Statement of Financial Position as at 30June 2019 Assets Cash 24 000 Accounts Receivable Less: Allowance for doubtful debts 37 500 200 37 300 Interest receivable 100 Inventory Prepaid insurance Machinery (cost) Less: Accumulated depreciation Vehicles 20 000 300 79 000 5 900 73 100 11 000 Less: Accumulated depreciation Goodwill 100 45 000 300 10 900 Less: Accumulated impaiment loss Investments 44 700 25 000 Total assets 235 400 Liabilities Accounts payable Rent payable Provision for annual leave 15 000 6 000 1 800 600 23 400 212 000 Provision for services warranties Total liabilities Net Assets Shareholders' equity Share capital Retained earnings 132 000 80 000 212 000 Other information: • For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019. • Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. • V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019. • Service warranty expense is only deductible as a tax deduction when claimed by customers. • The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the joumal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019 (5 marks) V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of comprehensive income for the year ended 30 June 2019 Sales revenue 650 000 Interest revenue Dividend revenue 500 300 Exempt income Capital profit on sale of land 400 700 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave 175 000 5 900 100 300 120 000 1 800 Rent of premises Insurance 72 000 1 200 Entertainment 400 Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 100 200 600 200 194 100 571 900 80 000 Statement of Financial Position as at 30June 2019 Assets Cash 24 000 Accounts Receivable Less: Allowance for doubtful debts 37 500 200 37 300 Interest receivable 100 Inventory Prepaid insurance Machinery (cost) Less: Accumulated depreciation Vehicles 20 000 300 79 000 5 900 73 100 11 000 Less: Accumulated depreciation Goodwill 100 45 000 300 10 900 Less: Accumulated impaiment loss Investments 44 700 25 000 Total assets 235 400 Liabilities Accounts payable Rent payable Provision for annual leave 15 000 6 000 1 800 600 23 400 212 000 Provision for services warranties Total liabilities Net Assets Shareholders' equity Share capital Retained earnings 132 000 80 000 212 000 Other information: • For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019. • Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. • V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019. • Service warranty expense is only deductible as a tax deduction when claimed by customers. • The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the joumal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019 (5 marks) V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of comprehensive income for the year ended 30 June 2019 Sales revenue 650 000 Interest revenue Dividend revenue 500 300 Exempt income Capital profit on sale of land 400 700 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave 175 000 5 900 100 300 120 000 1 800 Rent of premises Insurance 72 000 1 200 Entertainment 400 Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 100 200 600 200 194 100 571 900 80 000 Statement of Financial Position as at 30June 2019 Assets Cash 24 000 Accounts Receivable Less: Allowance for doubtful debts 37 500 200 37 300 Interest receivable 100 Inventory Prepaid insurance Machinery (cost) Less: Accumulated depreciation Vehicles 20 000 300 79 000 5 900 73 100 11 000 Less: Accumulated depreciation Goodwill 100 45 000 300 10 900 Less: Accumulated impaiment loss Investments 44 700 25 000 Total assets 235 400 Liabilities Accounts payable Rent payable Provision for annual leave 15 000 6 000 1 800 600 23 400 212 000 Provision for services warranties Total liabilities Net Assets Shareholders' equity Share capital Retained earnings 132 000 80 000 212 000 Other information: • For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019. • Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. • V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019. • Service warranty expense is only deductible as a tax deduction when claimed by customers. • The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the joumal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019 (5 marks)
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