Kitty Limited was incorporated in January 20X0 and earned its revenue by manufacturing pads. Its financial year end was
Posted: Wed Apr 27, 2022 10:46 am
Kitty Limited was incorporated in January 20X0 and earned its
revenue by manufacturing pads. Its financial year end was 31
December. The following issues had not been included into Kitty
Limited's financial statements for the year ended 31 December
20x1.
Issue 1: Deferred tax
No deferred tax has been provided since its establishment. Draft
statements of financial position as at 31 Dec 20X0 and 31 Dec
20X1:
Refer to Issue 1, determine the deferred tax impact for Kitty
Limited for 20X0 and 20X1 and prepare the journal entries to record
the deferred tax for the years ended 20x0 and 20x1.
Property, plant and equipment Investments Research and development cost Inventory Accounts receivable Bank Total assets Long service provision Accrued expenses Accounts payable Income tax payables Other payables Total liabilities Share capital Retained earnings 20x0 20X1 Carrying amount Tax base Carrying amount Tax base $'000 $'000 $'000 $'000 12,000 11,600 22,000 20,000 8,000 8,000 2,000 2,000 3,000 3,600 800 400 1,800 1,000 600 600 1,000 800 400 400 600 600 24,800 31,000 1,400 1,800 1,000 1,400 600 540 900 640 400 400 700 700 100 3,500 4,800 20,000 20,000 20,000 20,000 1,300 60 6,200 3,060 24,800 31,000
revenue by manufacturing pads. Its financial year end was 31
December. The following issues had not been included into Kitty
Limited's financial statements for the year ended 31 December
20x1.
Issue 1: Deferred tax
No deferred tax has been provided since its establishment. Draft
statements of financial position as at 31 Dec 20X0 and 31 Dec
20X1:
- Kitty Limited Was Incorporated In January 20x0 And Earned Its Revenue By Manufacturing Pads Its Financial Year End Was 1 (65.02 KiB) Viewed 32 times
Limited for 20X0 and 20X1 and prepare the journal entries to record
the deferred tax for the years ended 20x0 and 20x1.
Property, plant and equipment Investments Research and development cost Inventory Accounts receivable Bank Total assets Long service provision Accrued expenses Accounts payable Income tax payables Other payables Total liabilities Share capital Retained earnings 20x0 20X1 Carrying amount Tax base Carrying amount Tax base $'000 $'000 $'000 $'000 12,000 11,600 22,000 20,000 8,000 8,000 2,000 2,000 3,000 3,600 800 400 1,800 1,000 600 600 1,000 800 400 400 600 600 24,800 31,000 1,400 1,800 1,000 1,400 600 540 900 640 400 400 700 700 100 3,500 4,800 20,000 20,000 20,000 20,000 1,300 60 6,200 3,060 24,800 31,000