Reference no: EM132808133
Tuna Ltd reported a profit before tax for the year to 30 June 2019 of $600 000. The company's statements of financial position include assets and liabilities as follows: 2019 2018 Accounts receivable $ 330 000 $ 350 000 Allowance for doubtful debts (60 000) (35 000) Machinery- at cost 400 000 400 000 Accumulated depreciation (150 000) (120 000) Development Asset cost Provision for Annual Leave 300 000 70 000 170 000 65 000 Provision for Warranty 65 000 80 000
(a) Expenses included in profit for the year to 30 June 2019 are as follows:
Fines expense $60 000
Depreciation expense for machinery $30 000
Doubtful debts expense $50 000
Annual leave expense $45 000
Warranty $35 000
(b) Accumulated depreciation on equipment for tax purposes is $200 000 on 30 June 2019 and $120 000 on 30 June 2018. There have been no acquisitions or disposals of equipment during the current year.
(c) The tax office allows 125% claim on development cost.
(d) The corporate tax rate is 30%.
Required
Problem (1) Complete the current tax worksheet
Problem (2) Prepare the journal entries at 30 June 2019