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Below are the financial statements for the Royal Watch Ltd. Royal Watch Ltd - Income Statement 1 July 2020- 30 June 2021 Revenue $ Gross

Below are the financial statements for the Royal Watch Ltd.

Royal Watch Ltd - Income Statement 1 July 2020- 30 June 2021
Revenue $
Gross Sales 16,412,356
(Less Sales Returns and Allowances) 15,860
Net Revenue $16,396,496
Cost of Goods Sold
Beginning Inventory 1,862,792
Goods Purchased or Manufactured 9,580,365
Total Goods Available 11,443,157
(Less Ending Inventory) (1,762,835)
Cost of Goods Sold 9,680,322
Gross Profit (Loss) 6,716,174
Operating Expenses
Wages 1,150,123
Superannuation Costs 109,262
Depreciation on Plant and Machinery 498,365
Depreciation on Factory Premises 50,365
Depreciation on Leasehold Improvements 143,854
Electricity 325,640
Insurance on Factory Premises 54,352
Advertising and Promotion Expenses 158,063
Freight and Delivery Expenses 258,647
Total Operating Expenses 2,748,671
Gross Profit (Loss) After Operating Expenses 3,967,503
Other Income
Interest Income 8,672
Bad Debt Recovery 58,600
Net Gain from Disposal of Plant and Equipment 36,872
Total Other Income 104,144
Administration Expenses
Accounting and Audit Fees 38,450
Bank Charges 3,670
Commissions 328,608
Depreciation on Office Equipment 16,616
Employee Benefits 256,344
Entertainment Expenses 60,851
Insurance 79,562
Interest Expenses 369,207
Legal and Professional Fees 179,520
Maintenance and Repairs 279,420
Office Supplies 136,825
Payroll Taxes 85,252
Office Rental 138,950
Provision for Annual Leave 136,822
Provision for Doubtful Debts 380,450
Salaries 381,633
Superannuation Costs 36,256
Travel 46,830
Utilities 68,961
Total Administration Expenses 3,024,227
Net Income before Taxes 1,047,420
Less Income Tax Expenses 272,329
Net Income after Income Taxes 775,091

Question:

Please complete the calculation of profit and loss and reconciliation to taxable income/loss sections of the Company Tax Return for the year ended 30 June 2021.

All blank boxes must be completed.

*Show your workings for the Non-deductible expenses (label W).

Note: The table is based on the Australian Taxation Office's Company Tax Return for 2021.The full return can be found at: https://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/Company-tax-return-2021.pdf

Company Tax Return
Date from 01/07/2020
Date to 30/06/2021
Name of Company Royal Watch Ltd
Calculation of Total Profit or Loss
Income
Other sales of goods and services C

Gross interest F

Other gross income R

Total Income S

Expenses
Cost of sales A

Contractor, sub-contractor and commission expenses C

Superannuation expenses D

Rent expenses H

Interest expenses within Australia V

Depreciation expenses X

Repairs and maintenance Z

All other expenses S

Total Expenses Q

Total Profit or Loss T

Reconciliation to Taxable Income or Loss
Total profit or loss amount shown at T as above

Add:
Franking credits J

Other assessable income B

Non-deductible expenses (*list below all expenses included) W

Sub Total

Less:
Deduction for decline in value of depreciating assets F

Capital works deductions I

Other income not included in assessable income Q

Other deductible expenses X

Subtraction items subtotal

Taxable/net income or loss

Calculation statement
Taxable or net income A

Tax on taxable or net income T1

R&D recoupment tax M
Gross tax (T1 + M) B

Nonrefundable noncarry forwardtax offsets C
Subtotal 1 (B - C) (Cannot be less than zero) T2

Nonrefundable carry forward tax offsets D

Subtotal 2 (T2 - D) (Cannot be less than zero) T3

Refundable tax offsets E
Subtotal 3 (T3 - E) (Cannot be less than zero) T4

Franking deficit tax offset F

Tax Payable (T4 - F) (Cannot be less than zero) T5

Section 102AAM Interest Charge G
Credit for interest on early payments - amount of interest H1
Credit for tax withheld - foreign resident withholding (excluding capital gains) H2
Credit for tax withheld where ABNis notquoted H3
Tax withheld from interest or investments H4
Credit for TFN amounts withheld from payments from closely held trusts H5
Other credits H7
Credit for foreign resident capital gains withholding amounts H8
Eligible credits H
Tax offset refunds (Unused amounts from Label E). I
PAYG instalments raised K

AMOUNT DUE OR REFUNDABLE(T5 + G - H - I - K) S

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