Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 29 10 points Your client is a sole trader consulting business operated by the owner with five part-time employees, three being employed in the

image text in transcribed
Question 29 10 points Your client is a sole trader consulting business operated by the owner with five part-time employees, three being employed in the past year due to growth of the business and your clients seeking to employ a further two full time employees to satisfy contracts for which deposits have been received, in place for the next financial yew. From the time the business was established, 1 July 2015, it has been accounting for tax purposes on a cash basis. For the current financial year your client is considering if they should account on an accruals basis as the size of the business is increasing In considering the options the client notes that as at 30 June it has $40,000, which was paid to it from consulting work that was undertaken in the previous financial year. A. Calculate Jamee's assessable income for the current year ended 30 June 2020. B. Should this amount be included in its estable income for this year or last year if they decide to go ahead and report on an accruals basis? C. Would your answer be different if your client had deliberately told the customer not to pay its account for $40,000 until after 30 June? T Question 29 10 points Your client is a sole trader consulting business operated by the owner with five part-time employees, three being employed in the past year due to growth of the business and your clients seeking to employ a further two full time employees to satisfy contracts for which deposits have been received, in place for the next financial yew. From the time the business was established, 1 July 2015, it has been accounting for tax purposes on a cash basis. For the current financial year your client is considering if they should account on an accruals basis as the size of the business is increasing In considering the options the client notes that as at 30 June it has $40,000, which was paid to it from consulting work that was undertaken in the previous financial year. A. Calculate Jamee's assessable income for the current year ended 30 June 2020. B. Should this amount be included in its estable income for this year or last year if they decide to go ahead and report on an accruals basis? C. Would your answer be different if your client had deliberately told the customer not to pay its account for $40,000 until after 30 June? T

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

Students also viewed these Accounting questions