ACCY200 Financial Accounting IIA Spring 2017 Special Question 2 (due in week 3 tutorial) The financial statements of Spinner Ltd for the year ended 30 June 2016 report a profit before tax of $7 000. Included in the profit are the following items of income and expense 13 000 Rent revenue 6 100 Bad debts expense 25 000 Interest expense 17 900 Insurance expense Depreciation expense- vehicle 8 000 Long service leave expense 18 500 An extract of the comparative statement of financial position for 30 June 2016 is below: 2016 2015 Accounts receivable 82 000 79 000 Allowance for doubtful debts (9 000) (11 000) Prepaid insurance 9 100 8 500 Rent receivable 35 000 30 000 Vehicle 80 000 80 000 Accumulated depreciation - vehicle (24 000) (16 000) Interest payable 21 000 25 000 Provision for long service leave 12 400 16 000 Additional information: The tax deduction for depreciation on vehicle for 30 June 2016 is $16 000. The tax rate is 30% Required: Prepare the current tax worksheet for the year ended 30 June 2016 and record the journal entry needed for current tax. ACCY200 Financial Accounting IIA Spring 2017 Special Question 3 (due in week 4 tutorial) Bay Ltd has completed the current tax end of year adjustment for 30 June 2016: Deferred tax asset Dr 4.860 Cr Income tax expense (current) 4,860 Using the information below, as well as the entry above, Bay Ltd requires your help to complete end of year adjustments for income tax. Statement of Financial Position (extract) for 30 June 2016 S Accounts receivable 82 000 Allowance for doubtful debts (9 000) Prepaid insurance 9 100 Rent receivable 35 000 Vehicle 80 000 Accumulated depreciation - vehicle Interest payable (24 000) 21 000 Provision for long service leave 12 400 Additional information: . On 1 July 2015 the Deferred Tax Asset had a balance of $13 400 and the Deferred Tax Liability had a balance of $12 500. The tax deduction for depreciation on vehicle for 30 June 2016 is $16 000. Accumulated depreciation on vehicle for tax purposes at 30 June 2015 was $32 000 The tax rate is 30%. Required: Prepare a deferred tax worksheet and the deferred tax journal entry for Bay Ltd for the year ended 30 June 2016. SHOW ALL WORKING OUT ACCY200 Financial Accounting IIA Spring 2017 Special Question 2 (due in week 3 tutorial) The financial statements of Spinner Ltd for the year ended 30 June 2016 report a profit before tax of $7 000. Included in the profit are the following items of income and expense 13 000 Rent revenue 6 100 Bad debts expense 25 000 Interest expense 17 900 Insurance expense Depreciation expense- vehicle 8 000 Long service leave expense 18 500 An extract of the comparative statement of financial position for 30 June 2016 is below: 2016 2015 Accounts receivable 82 000 79 000 Allowance for doubtful debts (9 000) (11 000) Prepaid insurance 9 100 8 500 Rent receivable 35 000 30 000 Vehicle 80 000 80 000 Accumulated depreciation - vehicle (24 000) (16 000) Interest payable 21 000 25 000 Provision for long service leave 12 400 16 000 Additional information: The tax deduction for depreciation on vehicle for 30 June 2016 is $16 000. The tax rate is 30% Required: Prepare the current tax worksheet for the year ended 30 June 2016 and record the journal entry needed for current tax. ACCY200 Financial Accounting IIA Spring 2017 Special Question 3 (due in week 4 tutorial) Bay Ltd has completed the current tax end of year adjustment for 30 June 2016: Deferred tax asset Dr 4.860 Cr Income tax expense (current) 4,860 Using the information below, as well as the entry above, Bay Ltd requires your help to complete end of year adjustments for income tax. Statement of Financial Position (extract) for 30 June 2016 S Accounts receivable 82 000 Allowance for doubtful debts (9 000) Prepaid insurance 9 100 Rent receivable 35 000 Vehicle 80 000 Accumulated depreciation - vehicle Interest payable (24 000) 21 000 Provision for long service leave 12 400 Additional information: . On 1 July 2015 the Deferred Tax Asset had a balance of $13 400 and the Deferred Tax Liability had a balance of $12 500. The tax deduction for depreciation on vehicle for 30 June 2016 is $16 000. Accumulated depreciation on vehicle for tax purposes at 30 June 2015 was $32 000 The tax rate is 30%. Required: Prepare a deferred tax worksheet and the deferred tax journal entry for Bay Ltd for the year ended 30 June 2016. SHOW ALL WORKING OUT
