The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Violet for the year ended 30 June 2014, amounted to $60 000, including the following revenue and expense items:

The statement of financial position of the company at 30 June 2014 showed the following net assets.

Additional information

(a) Accumulated depreciation of plant for tax purposes was $31 500 at 30 June 2013, and depreciation for tax purposes for the year ended 30 June 2014 amounted to $7500.

(b) The tax rate is 30%.

Required

Prepare a worksheet to calculate taxable income and the companys current tax liability as at 30 June 2014, and prepare the end of reporting period adjustment journal.

Exercise 6.7 CALCULATION OF CURRENT TAX LIABILITY AND ADJUSTING JOURNAL ENTRY * The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Violet for the year ended 30 June 2014, amounted to $60 000, including the following revenue and expense items: Rent Government grant received (non-taxable) Bad debts expense revenue 3 000 6000 CHAPTER& Income taxes 203