Question
The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities. 2021 Assets $ Cash 3,000 Accounts
The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities.
| 2021 |
Assets | $ |
Cash | 3,000 |
Accounts receivables | 85,000 |
Allowance for doubtful debts | (4,000) |
Inventory | 9,500 |
Prepaid insurance | 3,600 |
Plant | 60,000 |
Accumulated Depreciation - Plant | (15,000) |
Deferred Tax Asset (at 30/06/2020: $1,270) | ? |
|
|
Liabilities |
|
Accounts Payable | 75,000 |
Provision for Long service leave | 2,000 |
Revenue received in advance | 3,000 |
Deferred Tax Liability (at 30/06/2020: $800) | ? |
Additional information
a. Accumulated depreciation of plant for tax purposes was $20,000 as at 30 June 2021.
b. The tax rate is 30%.
Required
Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2021.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started