You are the accountant for Chocs Group ple which has several companies each with an October year end. In connection with the 31 October 2023 Financial Statements, you have been asked to provide the balances which should appear in tax expenses, current tax payable and deferred tax for each company in accordance with LAS 12. Details are: a. Twix Ltd Estimated tax on profits for the year ended 31 October 2023 is $75,000. The estimated tax on profits for the year ended 31 October 2022 , accounted for in the 2022 financial statements was 565,000 . The tax computation for that year has recently been agreed with HMRC at f64,000, paid on 25 October 2023 . The trial balance shows an amount in current tax payable of $1,000 in respect of 2022. An amount of f10,000 should be transferred to deferred tax for 2023. b. Wispa Led Tax on profits for the current year is estimated to be 23,000. The estimated tax accounted for in the previous year was 635,000 . The final amount agereed with HMRC in respect of the previous year was $38,000. This was settled during the year, the full amount being debited to current tax payable account. An amount of 5,000 should be transferred to deferred tax. c. Snickers Ltd Snickers estimates its tax on profits for the year ended 31 October 2023 should be 85,000. In the previous year's financial statements, it had a tax expense relating to the year ended 31 October 2022 of 78,000. The tax position for Oetober 2022 has recently been agreed with HMRC at 883,000 , which will be paid in November 2023. Snickers will transfer an amount to deferred tax at 31 Oetober 2023 of 8,000. Required: a) For each of the company's above prepare the journal(s) to account for the different elements of the tax expense at 31 October 2023. b) For each company, show the impact on Statement of Comprehensive Income, Assets, Liabilities and Equity. c) For each company show the note to the financial statements associated with the tax expense. Question 2a (IAS 21) Pesto ple is a UK listed company with an October year end which uses f as its functional and reporting currency. During Oetober 2023 it started buying its basil directly from farmers in Italy and made the following purchases. Credit terms have been agreed at 30 days and none of the invoices had been settled at the year end. The exchange rate on 31 October 2023 was f1=1.160 Pesto ple's uses LAS 21 for accounting for foreign currency transactions. Required: a. Calculate the amount of purchases debited to the purchases account for the 4 transactions b. Calculate the trade payables balance at 31 Octeber 2023 c. Calculate any exchange gain or loss and explain how it would be treated in the financial statements at 31 Oetober 2023 Question 2b Pesto ple sourecs its pine nuts from a German wholesaler who invoices in . On 1 October 2023, Pesto purchased pine nuts with an invoice price of 51,000. The spot rate on thar date was E1 =1.120. Pesto settled the invoice on 12 October when the spot rate was f1=1.146. Pesto does not operate a bank account in euros. Required: a. Prepare the journal entry for the initial purchase b. Prepare the journal to record the payment c. Prepare any journals required at 31 October 2023 Question 2c Pesto ple exports jars of its finished pesto to a customer in Japan which it invoices in Japanese Yen( ). On 14 October 2023 it made a large sale, invoice value $1,200,000 when the exchange rate was f1=$136,55. The amount was still outstanding on 31 October 2023 when the exchange rate was ft=$139.68. Required: a. Prepare the journal to record the sale on 14 October mox Question 2c Pesto plc exports jars of its finished pesto to a customer in Japan which it invoices in Japanese Yen( 9 ). On 14 October 2023 it made a large sale, invoice value $1,200,000 when the exchange rate was fI= Y136.55. The amount was still outstanding on 31 October 2023 when the exchange rate was f1=$139.68. Required: a. Prepare the journal to record the sale on 14 October 2023. b. Prepare any year end journals required. Question 2d On 1 October 2023, Pesto ple invested in new processing equipment, purchased from a US supplier at a cost of $145,000. The spot rate on the date of purchase was EI= $1.224 and on 31 October 2023 was fl=$1.294. The supplier invoice was still outstanding at 31 October 2023. Pesto ple depreciates its equipment over 5 years straight line with a full year's depreciation in the year of acquisition. Required: Prepare all the journal entries necessary to reflect this transaction Question 5e Required: a) Which of the following Assets and Liabilities are monetary items for the purposes of LAS 21 ? - Vehicles purchased in a foreign currency - Bank account held in a foreign currency - Bank loan held in foreign currency - Inventory items purchased in a foreign currency - Trade receivables - Trade payables