Reference no: EM133134347
Question - The financial statements of Glade Ltd for the year ended 30 June 2022 show a profit before tax of $220,500, including the following items of income and expense:
Fines and penalties 3,200
Impairment of goodwill 10,500
Depreciation expense - plant 50,000
Bad debts expense 5,600
Warranty expense 9,500
Insurance expense 6,000
Rent revenue 12,600
Additional Information -
(a) The balance of the Allowance for Doubtful Debts account at 30 June 2021 was $9,800, and at 30 June 2022 the balance in the account was $12,200.
(b) The balance of the Provision for Warranties account at 30 June 2021 was $12,000, and at 30 June 2022 the balance in the account was $14,500.
(c) The balance of the Prepaid Insurance account at 30 June 2021 was $5,500, and the balance in the account at 30 June 2022 was $8,000.
(d) The balance of the Rent Received in Advance account at 30 June 2021 was $16,000, and the balance in the account at 30 June 2022 was $12,500.
(e) Plant was purchased on 1 July 2021 at a cost of $400,000. Plant is depreciated over eight years for accounting purposes. The depreciation rate for tax purposes for this type of plant is 25%.
(f) For the year ending 30 June 2021, Spartan Ltd recorded a carry-forward tax loss of $16,000. Spartan Ltd had an expectation of future profits.
(g) The corporate tax rate is 30%.
Required - Prepare the complete current tax worksheet, and the applicable current tax journal entries required by Glade Ltd, for the year ended 30 June 2022. Show all workings and calculations.