Question
The Statement of Financial Position of Paul Ltd as at 30 June 2021 showed the following assets and liabilities. 2021 Assets $ Cash 4,500 Accounts
The Statement of Financial Position of Paul Ltd as at 30 June 2021 showed the following assets and liabilities.
| 2021 |
Assets | $ |
Cash | 4,500 |
Accounts receivables | 127,500 |
Allowance for doubtful debts | (6,000) |
Inventory | 14,250 |
Prepaid insurance | 5,400 |
Plant | 90,000 |
Accumulated Depreciation - Plant | (22,500) |
Deferred Tax Asset (at 30/06/2020: $2,000) | ? |
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Liabilities |
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Accounts Payable | 112,500 |
Provision for Long service leave | 3,000 |
Provision for Warrranty | 4,500 |
Deferred Tax Liability (at 30/06/2020: $1,000) | ? |
Additional information
a. Accumulated depreciation of plant for tax purposes was $30,000 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.
DEFERRED TAX WORKSHEET | ||||
| Carrying Amount | Tax Base | Taxable Temp Diff | Deductible Temp Diff |
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Journal Entry for Deferred Taxes | ||
| DR | CR |
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