Calculate the current tax liability

Assignment Help Financial Accounting
Reference no: EM131711905

The accounting profit of Alpha Ltd for the year ended 30 June 2017 was $250 000. The following additional information is provided.

- Property plant and equipment: cost $500 000 on 1 July 2014. It is depreciated at 20% per annum straight-line with zero residual value for accounting purposes and 30% per annum straight-line for tax purposes.

- Accounts receivable: current balance is $200 000. The current balance of the allowance for doubtful debts is $2 000 debit (after writing off bad debts during the period of $5,000). The final balance of the allowance for doubtful debts is to be adjusted to represent 2% of the closing balance of accounts receivable.

- Provision for employee benefits: opening balance $100 000, closing balance $120 000, employee benefits expense $42 500. The tax rate is 30%.

Required:

a) Calculate the current tax liability for the year ending 30 June 2017.

b) Provide all general journal entries necessary to record deferred tax for Property plant and equipment and Provision for employee benefits for the year ending 30 June 2017.

Reference no: EM131711905

Questions Cloud

Order winners and order qualifiers : Order winners and order qualifiers are. Which of the following statements regarding work-life conflict is accurate?
What is the full cost per unit : Larcker Manufacturing's cost accountant has provided you with the following information for January operations: What is the full cost per unit
What is the amount of the refund ode to the customer : What is the amount of the refund ode to the customer? illustrate the effects on the accounts in financial statement of the return and refund
Which impact the application of management activities : compare and contrast alternative schools of thought, cultural and political differences which impact the application of management activities within the broad.
Calculate the current tax liability : Calculate the current tax liability for the year ending 30 June 2017 - Provide all general journal entries necessary to record deferred tax for Property plant
Discuss gift based upon the law enforcement oath of honor : Is it ethical or unethical for you to accept the gift based upon the Law Enforcement Oath of Honor? Explain your response in detail
What do you notice about the percentages listed : Illegal guns. A study by the U.S. Bureau of Alcohol, Tobacco, and Firearms (BATF) (USA Today, 22 June 2000) surveyed 1530 investigations by the U.S. BATF.
Prepare proper journal entries for each transactions : Required: Prepare the proper journal entries for each of these transactions as well as the year-end adjustment (if needed) for each
What is a succession management system : What is a succession management system? How can you ensure that it is effective?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd