Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

this is the question At 30 June 2018, Hawaii Limited had the following balances: : Asset or liability: Carrying amount : Tax base : Computers

image text in transcribed

this is the question

image text in transcribed
At 30 June 2018, Hawaii Limited had the following balances: : Asset or liability: Carrying amount : Tax base : Computers at cost : 300 000: 300 000.: Accumulated depreciation : 60 000: 100 000.: Accounts receivable: 100 000 : 100 000 .: Allowance for doubtful debts : 10 000: .: Provision for warranty costs : 30 000: .: Provision for em lo ee benets LSL : 20 000.: .: The following information is available for the year ended 30 June 2019.: Statement of comprehensive income for Hermit" Ltmt'tedfor the ear ended 30 June 2019: Revenue : 4 000 000: Cost of goods sold expense: 1 800 000: Depreciation expense: 60 000: Warranty expense : 90 000: Bad and doubtll debts expense: 25 000: Other expenses: 1 325 000: Prot before tax: 650 000: Hawaii Limited depreciates computers over ve years in its accounting records but over three years for tax purposes. The straight-line method is used. During the year the company wrote off bad debts amounting to $15 000. Warranty costs of $70 000 were paid during the year. No amounts were paid for long-service leave during the year. : The following information is extracted from the statement of nancial position at 30 June 2019:: .J Assets: .. Accounts receivable: 120 000.: Allowance for doubtful debts: 20 000: Liabilities: : Provision for warranty costs: 50 000: Provision for employee benets (LSL): 30 000: J No plant and equipment were purchased during the year and the tax rate at 30 June 2018 and 30 June 2019 was 30%.: REQUIRED : (a) Show the deferred tax calculation using the deferred tax worksheet and the deferred tax journals for 30 June 2018 (8 marks): (b) Calculate Hawaii Limited's income tax and show the income tax journals for the year ended 30 June 2019. (9 marks): (c) Show the deferred tax calculation using the deferred tax worksheet and the deferred tax journals for 30 Iune19. (10 marks): ((1) Briey discuss the treatment of deferred tax assets & tax losses in accordance with AASB 112

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2019

Authors: Jeanette Landin, Paulette Schirmer

5th edition

125991707X, 978-1259917073

More Books

Students also viewed these Accounting questions