Question

In: Accounting

A. You are provided with the following information form the accounts of BBS Ltd for the...

A. You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019 Cash Sales 950 000 Cost of Goods Sold 35 000 Amount received in advance for services to be performed in August 2019 9 500 Rent expenses for year ended 30 June 2019 9 000 Rent Prepaid for two months to 31 August 2019 1 200 Doubtful debts expenses 1 200 Amount provided in 2019 for employees’ long-service leave entitlements 5 000 Goodwill impairment expenses 7 000 Required: Calculate the taxable profit and accounting profit for the year ending 30 June 2019. B. GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $9 00 000 Deferred tax liability $7 00 000 The above balances were calculated when the tax rate, was 20 per cent.

On 1 December 2019 the government raises the corporate tax rate to 25 per cent. Required: Provide the journal entries to adjust the carry-forward balances of the deferred tax asset and deferred tax liability.

Solutions

Expert Solution


Related Solutions

A. You are provided with the following information form the accounts of BBS Ltd for the...
A. You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019 Cash Sales 950 000 Cost of Goods Sold 35 000 Amount received in advance for services to be performed in August 2019 9 500 Rent expenses for year ended 30 June 2019 9 000 Rent Prepaid for two months to 31 August 2019 1 200 Doubtful debts expenses 1 200 Amount provided in 2019 for employees’ long-service leave entitlements...
A. You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019
A. You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019 Cash Sales = 950 000 Cost of Goods Sold= 35 000 Amount received in advance for services to be performed in August 2019 = 9 500 Rent expenses for year ended 30 June 2019 = 9 000 Rent Prepaid for two months to 31 August 2019 =1 200 Doubtful debts expenses = 1 200 Amount provided in 2019 for...
PART A The following information is provided concerning the accounts of Jazzy Ltd . You are...
PART A The following information is provided concerning the accounts of Jazzy Ltd . You are asked to identify how each of these items is shown in the financial statements. (a) gain on revaluation of available-for-sale investments (b) dividends paid during the year (c) revaluation gain on building (not reversing any previous revaluation) (d) transfer to dividend equalisation reserve (e) Unsecured notes issued PART B Explain why comparative information is required to be provided in the financial statements.
You are provided with the following financial information for ‘Don Store Pty Ltd’, a business selling...
You are provided with the following financial information for ‘Don Store Pty Ltd’, a business selling cosmetics for women in the South Africa. Don Store PTY LTD    COMPARATIVE BALANCE SHEETS      AS AT JUNE 30                                                                                  2020                            2019                 Current Assets Cash on Hand $2 400 $8 000 Cash at Bank 870 2 018 Accounts Receivable (net) 19 464 9 000 Inventory 56 000    36 000 Prepaid Expenses 3 300 $82 034 1 300 $56 318 Non-Current...
The following information is provided regarding Garry Limited’s accounts receivable and allowance for doubtful accounts: Accounts...
The following information is provided regarding Garry Limited’s accounts receivable and allowance for doubtful accounts: Accounts Receivable, January 1, 2019 $1,450,000 Collections of Accounts Receivable during the year $1,700,000 Write-offs of Accounts Receivable $ 425,000 Accounts Receivable December 31, 2019 $1,800,000 Allowance for Doubtful Accounts (December 31, 2019 balance (before bad debts adjusting entry at December 31, 2019) $ 155,000(debit) Required: (a) Calculate the credit sales for the year 2019. (b) Provide the journal entry that was made to write-off...
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its...
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula. Date Explanation Supplier Serial # Unit Cost/Price Aug. 1 Beginning inventory Yamaha YH6318 $1,800 Kawai KG1268 1,800 Kawai KG1520 900 Suzuki SZ5716 1,400 Suzuki SZ5828 1,900 Steinway ST8411 2,900 Steinway ST0944 2,500 10 Sales Suzuki SZ5828 3,000 Kawai KG1268 2,100 15 Purchases Yamaha YH4418 1,600 Yamaha YH5632 1,900 18...
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its...
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula. Date Explanation Supplier Serial # Unit Cost/Price Aug. 1 Beginning inventory Yamaha YH6318 $1,800 Kawai KG1268 1,800 Kawai KG1520 900 Suzuki SZ5716 1,400 Suzuki SZ5828 1,900 Steinway ST8411 2,900 Steinway ST0944 2,500 10 Sales Suzuki SZ5828 3,000 Kawai KG1268 2,100 15 Purchases Yamaha YH4418 1,600 Yamaha YH5632 1,900 18...
Use the following information to answer questions 31 to 36: CDE Ltd has provided you with...
Use the following information to answer questions 31 to 36: CDE Ltd has provided you with the following data relating to the product manufactured by his factory: Selling price per unit $ 100 Variable manufacturing costs per unit 48 Fixed manufacturing costs per annum 250,000 Variable marketing, distribution and administration costs per unit 16 Fixed non-manufacturing costs per annum 182,000 What is the contribution margin per unit? Show your workings. Calculate quantity to produce to break even in both units...
You have been provided with the following information for a small private company, Formosa Pty Ltd,...
You have been provided with the following information for a small private company, Formosa Pty Ltd, whose competitors are predominately large public companies. 2017 2018 2019 Industry average 2019 Net profit margin 8.2% 7.5% 6.8% 8.0% Return on equity 13.1% 12.3% 11.1% 13.5% Current ratio 1.8 2.1 2.4 2.0 Quick ratio 1.2 1.1 0.9 1.2 Receivables turnover 12.2 12.6 13.0 13.0 Inventory turnover 4.7 4.5 4.2 4.8 REQUIRED: Comment on the trend of each of the six ratios for Formosa...
The Blackbeard Company Ltd provided the following information in regard to its operations for the year...
The Blackbeard Company Ltd provided the following information in regard to its operations for the year ended 30 June 2014: Cash Book Summary Opening balance $20,000 Accounts Payable $40,000 Accounts receivable 100,000 Bills Payable (suppliers) 20,000 Bills Receivable (suppliers) 20,000 Interest paid 60,000 Debenture Issue 400,000 Operating expenses 180,000 Dividends received 20,000 Salaries & wages 200,000 Interest received 40,000 Current tax payable 80,000 Motor vehicles 60,000 Plant & machinery 100,000 Share capital 200,000 Dividend paid 120,000 Balance c/d 60,000 860,000...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT