Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, I would like you to help me with the solutions for avttached document that is shown below. Thank you very much. V Ltd was

Hi, I would like you to help me with the solutions for avttached document that is shown below. Thank you very much.

image text in transcribedimage text in transcribed

image text in transcribed

V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows: Statement of Sales revenue Interest revenue Dividend revenue Exempt income Capital profit on sale of land hensive income for the year ended 30 June 2019 650 000 300 651 900 Cost of sales Depreciation on machinery Depreciation on vehicles Goodwill impairment loss Salaries and wages Annual leave Rent of premises Insurance Entertainment Fines and penalties Fringe benefits tax Warranty expense Doubtful debts expense Other expenses Profit before income tax 175 000 5 900 100 300 120 000 1 800 72 000 1200 100 194 100 51900 Other information: For tax purposes, depreciation on machinery is S14 000 and for vehicles S300, for the year ended 30 June 2019 .Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid. V Ltd has accrued annual leave entitlements of S1 800 in calculating net profit for the year ended 30 June 2019 Serice warranty expense is only deductible as a tax deduction when claimed by customers The company accrues doubtful debts expense as soon as it appears on a customer's account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted. The tax rate is 30 per cent. Required: 1) Complete the journal entry to account for current taxes (5 marks) 2) Complete the deferred tax worksheet (15 marks) 3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing An International Approach

Authors: Wally Smieliauskas, Amy Kwan, Kathleen Cogliano, Catherine Barrette

8th Canadian Edition

ISBN: 1259451275, 978-1259451270

More Books

Students also viewed these Accounting questions

Question

7. Understand the challenges of multilingualism.

Answered: 1 week ago