BUS 356 Contemporary Financial Accounting TJA 2019 Assignment Answers | Murdoch, Singapore

Assignment Facts

V Ltd was established on 1 July 2018 with share capital of $132 000. One year later the statement of comprehensive income and statement of financial position were as follows:

Other information:

• For tax purposes, depreciation on machinery is $14 000 and for vehicles $300, for the year ended 30 June 2019.
• Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not deductible for tax purposes until paid.
•  V Ltd has accrued annual leave entitlements of $1 800 in calculating net profit for the year ended 30 June 2019.
• Service warranty expense is only deductible as a tax deduction when claimed by customers.
• The company accrues doubtful debts expense as soon as it appears on a customer’s account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted.
• The tax rate is 30 percent.

Required:
1) Complete the journal entry to account for current taxes (5 marks)
2) Complete the deferred tax worksheet (15 marks)
3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019
(5 marks)