ACCG224 Financial Accounting and Reporting Assignment

Assignment Help Financial Accounting

Reference no: EM133082073

ACCG224 Financial Accounting and Reporting - Macquarie University

Practice Question for Accounting for Income Tax

The pretax accounting profit for Dawson Ltd was $132,000 for the year ended 30 June 2015. Included in the accounting profit were the following items of revenue and expense:

Government Grant	$10,600
Depreciation- Machinery (10% of cost)	$20,000
Long Service Leave Expense	$15,000
Bad Debts Expense	$2,300
Rent Revenue	$3,400

For tax purposes the following applied

Depreciation - Machinery (25% of cost)	$50,000
Long Service Leave paid	$0
Rent Received in Advance	$8,200
Bad Debts written off	$1,000
Government Grant is considered to be tax exempt
Income Tax rate	30%

Required

a. Calculate the current tax liability for the year ended 30 June 2015.

b. Calculate the amount of deferred tax assets and deferred tax liabilities in the relation to the temporary differences. Assume that the balance in the deferred tax assets and deferred tax liabilities is zero at the beginning of the year.

c. Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 30 June 2015.

Reference no: EM133082073

Questions Cloud

Multimedia activity-business organization : Explain the following business structures: sole proprietorship, partnership, LLC, and a corporation. Personal liability for owners

Flexible supply chain management : It is expressed that the concentration of supply chain management must advance in response to fluctuating business environments

Population health management patterns : Effective population health management (PHM) requires strategies to reach the individual consumer

Fosters environment that prioritizes patient safety : You are the risk manager for local, long-term care facility. Part of your role is to develop processes that fosters environment that prioritizes patient safety.

ACCG224 Financial Accounting and Reporting Assignment : ACCG224 Financial Accounting and Reporting Assignment Help and Solution, Macquarie University - Assessment Writing Service

Privacy of patient records : Why would a health care clinic or hospital need a health information manager? How might having a designated manager help ensure privacy of patient records?

Communicating-negotiating and resolving conflicts : Communicating, Negotiating, and Resolving Conflicts Across Cultures, the author lists 11 second-language strategies to improve communication with ESL speakers

How do you plan to obtain experiences : What experiences do you think are critical to your entrepreneurial development, and why? How do you plan to obtain these experiences?

Describe Experiential learning : What are the authors credentials or organizational affiliations and Would you be comfortable using this source in a research paper

User Account

All Pages