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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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