Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Accounting for income tax
Twinkle Ltd commences operations on 1 July 2013 and presents its first Statement of Profit or Loss and Other Comprehensive Income, and first Statement of Financial Position on 30 June 2014. The statements are prepared before considering taxation. The following information is available:
Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2014
$
Gross profit
420,000
Royalty revenue (exempt income)
30,000
Expenses:
Administration expenses
75,000
Salaries
150,000
Long service leave
15,000
Warranty expenses
20,000
Depreciation expense - plant
80,000
Insurance
370,000
Accounting profit before tax
Assets and liabilities as disclosed in the Statement of Financial Position as at 30 June 2014
Assets
Cash
10,000
Inventory
110,000
Accounts receivable
40,000
Prepaid insurance
Goodwill
Plant - cost
400,000
Less: accumulated depreciation
320,000
Total assets
515,000
Liabilities
Accounts payable
35,000
Provision for warranty expenses
Loan payable
225,000
Provision for long service leave
Total liabilities
285,000
Net assets
230,000
Other information:
Required:
i) Determine the balance of any current and deferred tax assets and liabilities (using appropriate worksheets) as at 30 June 2014, in accordance with AASB 112. Show all necessary workings.
ii) Prepare the journal entries to record the current tax liability and movements in deferred tax assets and liabilities.
iii) What would your answer for part (a) if the following items on the statement of profit or loss and other comprehensive income were changed: 'Gross profit' was $360,000 (instead of $420,000) and the 'Royalty revenue (exempt income)' was $90,000 (instead of $30,000). Show all calculations and necessary workings.
Jones has an interest in history, particularly commercial history. In 2005 he purchased 500 old share certificates from an acquaintance who practised in the area of insolvency and liquidation.
glenn and andrea are both highly paid professional people working and living in melbourne. they decide to opt out of
Do you agree with Ann's technique of comparing foreign companies with one another and find what are some factors that must be considered when conducting cross-country comparisons among companies?
Prepare suitable entries for both User and Scape from the inception of the lease through the second rental payment on 1st April, 2013. Depreciation is recorded at the end of each fiscal year.
Find the effects be of the overall transactions on reported income for 2009? Why would Steinbach take these actions - Is this ethical? Why or why not?
What are the potential advantages and disadvantages to a company's shareholders if the company increases the proportion of debt in its capital structure?
virginia who was experiencing financial difficulties was capable to adjust her debts as follows. determine the tax
Assist Thorn in completing schedule by filling in blanks for items related to its income taxes for 2014 and Create the income tax journal entry for Fairfax Company for 31 st December, 2014.
Compute the taxable income for 2012 for Aiden on the basis of the information and aiden is married but has not seen or heard from his wife since 2010.
there is a significant amount of gray area when interpreting tax regulations. there are several resources available to
Prepare an essay in which you recommend the most advantageous tax filing status for Spouse A and Spouse B on their federal tax return.
What is the effect upon carrying value and earnings for each of the situation presented?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd