Assignment: Contemporary Financial Accounting
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:
Statement of comprehensive income for the year ended 30 June 2019
|
Sales revenue
|
|
650 000
|
|
Interest revenue
|
|
500
|
|
Dividend revenue
|
|
300
|
|
Exempt income
|
|
400
|
|
Capital profit on sale of land
|
|
700
|
|
|
|
651 900
|
|
Cost of sales
|
175 000
|
|
|
Depreciation on machinery
|
5 900
|
|
|
Depreciation on vehicles
|
100
|
|
|
Goodwill impairment loss
|
300
|
|
|
Salaries and wages
|
120 000
|
|
|
Annual leave
|
1 800
|
|
|
Rent of premises
|
72 000
|
|
|
Insurance
|
1 200
|
|
|
Entertainment
|
400
|
|
|
Fines and penalties
|
100
|
|
|
Fringe benefits tax
|
200
|
|
|
Warranty expense
|
600
|
|
|
Doubtful debts expense
|
200
|
|
|
Other expenses
|
194 100
|
571 900
|
|
Profit before income tax
|
|
80 000
|
Statement of Financial Position as at 30 June 2019
|
Cash Accounts Receivable
|
37 500
|
24 000
|
|
Less: Allowance for doubtful debts
|
200
|
37 300
|
|
Interest receivable
|
|
100
|
|
Inventory
|
|
20 000
|
|
Prepaid insurance Machinery (cost)
|
79 000
|
300
|
|
Less: Accumulated depreciation
|
5 900
|
73 100
|
|
Vehicles
|
11 000
|
|
|
Less: Accumulated depreciation
|
100
|
10 900
|
|
Goodwill
|
45 000
|
|
|
Less: Accumulated impairment loss
|
300
|
44 700
|
|
Investments
|
|
25 000
|
|
Total assets
|
|
235 400
|
|
Liabilities Accounts payable
|
|
15 000
|
|
Rent payable
|
|
6 000
|
|
Provision for annual leave
|
|
1 800
|
|
Provision for services warranties
|
|
600
|
|
Total liabilities
|
|
23 400
|
|
Net Assets
|
|
212 000
|
|
Shareholders' equity Share capital
|
|
132 000
|
|
Retained earnings
|
|
80 000
|
|
|
|
212 000
|
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 per cent.
Required:
1) Complete the journal entry to account for current taxes.
2) Complete the deferred tax worksheet.
3) Completion of the Statement of Comprehensive Income for the year ended 30 June 2019.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Assignment-Template.rar