The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Hawker Ltd for the year ended 30 June 2021, amounted to $60,000, including the following revenue and expense items. Rent revenue Bad debts expense Depreciation expense plant Annual leave expense Long service leave expense Entertainment costs (non-deductible) Depreciation expense buildings (non-deductible) $3000 6 000 5 000 3 000 1 500 1 800 800 The statement of financial position of the company at 30 June 2021 showed the following assets and liabilities. 2021 2020 Assets Cash Inventories Accounts receivables Allowance for doubtful debts Office supplies Plant Accumulated depreciation - plant Buildings Accumulated depreciation - buildings Goodwill (net) Deferred tax asset Liabilities Accounts payable Provision for long service leave Provision for annual leave Rent received in advance Deferred tax liability $ 8000 17 000 50 000 (5500) 2 500 50 000 (26 000) 30 000 (14 800) 7 000 ? $ 8500 15500 48 000 (4000) 2 200 50 000 (21 000) 30 000 (14000) 7 000 4050 29000 6000 4000 2 500 ? 26 000 4 500 3000 2 000 3 150 . Additional information At 30 June 2020, accumulated depreciation of plant for tax purposes was $31,500. The amount of depreciation that was deductible for tax purposes for the year ended 30 June 2021 was $7,500. Doubtful Debts are recognised as a deduction for tax purposes when the debt is written off. Rent is assessable for tax purposes when the cash is received. Annual leave and long service leave are deductible for tax purposes when the cash is paid. Entertainment costs are not deductible for tax purpose Buildings are exempt for the purposes of calculating Deferred Tax Assets and Liabilities, in accordance with the requirements of AASB 112: Income Taxes. The tax rate is 30%. . . . Required 1. Prepare a current tax worksheet and the journal entry to recognise the company's current tax liability as at 30 June 2021. Note: you must base the worksheet on those used in the MyUni examples for this topic 2. Prepare a deferred tax worksheet and journal entry to recognise the movements in the company's deferred tax assets and liabilities for the year ended 30 June 2021. 3. Specify the total amount of Income Tax Expense that would be recognised by the company for the year ended 30 June 2021 The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Hawker Ltd for the year ended 30 June 2021, amounted to $60,000, including the following revenue and expense items. Rent revenue Bad debts expense Depreciation expense plant Annual leave expense Long service leave expense Entertainment costs (non-deductible) Depreciation expense buildings (non-deductible) $3000 6 000 5 000 3 000 1 500 1 800 800 The statement of financial position of the company at 30 June 2021 showed the following assets and liabilities. 2021 2020 Assets Cash Inventories Accounts receivables Allowance for doubtful debts Office supplies Plant Accumulated depreciation - plant Buildings Accumulated depreciation - buildings Goodwill (net) Deferred tax asset Liabilities Accounts payable Provision for long service leave Provision for annual leave Rent received in advance Deferred tax liability $ 8000 17 000 50 000 (5500) 2 500 50 000 (26 000) 30 000 (14 800) 7 000 ? $ 8500 15500 48 000 (4000) 2 200 50 000 (21 000) 30 000 (14000) 7 000 4050 29000 6000 4000 2 500 ? 26 000 4 500 3000 2 000 3 150 . Additional information At 30 June 2020, accumulated depreciation of plant for tax purposes was $31,500. The amount of depreciation that was deductible for tax purposes for the year ended 30 June 2021 was $7,500. Doubtful Debts are recognised as a deduction for tax purposes when the debt is written off. Rent is assessable for tax purposes when the cash is received. Annual leave and long service leave are deductible for tax purposes when the cash is paid. Entertainment costs are not deductible for tax purpose Buildings are exempt for the purposes of calculating Deferred Tax Assets and Liabilities, in accordance with the requirements of AASB 112: Income Taxes. The tax rate is 30%. . . . Required 1. Prepare a current tax worksheet and the journal entry to recognise the company's current tax liability as at 30 June 2021. Note: you must base the worksheet on those used in the MyUni examples for this topic 2. Prepare a deferred tax worksheet and journal entry to recognise the movements in the company's deferred tax assets and liabilities for the year ended 30 June 2021. 3. Specify the total amount of Income Tax Expense that would be recognised by the company for the year ended 30 June 2021
