The Statement of Financial Position of Hawkeye as at 30 June 2022 showed the following assets and liabilities:2022$AssetsCashAccounts receivablesAllowance for doubtful debtsInventoryRent ReceivablePlantAccumulated Depreciation - PlantDeferred Tax AssetLiabilitiesAccounts PayableUnearned rent revenueProvision for annual leaveDeferred Tax LiabilityAdditional information15 00030,000(3,000)13,5007,000100,000(40,000)?19,0005,0002,500?2021$12 50040,000(5,000)10,5007,500100,000(30,000)3,40016,0003,5002,0005,200a. Accumulated depreciation of plant for tax purposes was $55,000 as at 30 June 2022.b.The tax rate is 30%.RequiredPrepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2022.

Deferred tax (DT) refers to the difference between tax amount arrived at from the book profits…

The Statement of Financial Position of Hawkeye as at 30 June 2022 showed the following assets and liabilities: 2022 2021 $ $ Assets Cash Accounts receivables Allowance for doubtful debts Inventory Rent Receivable Plant Accumulated Depreciation - Plant Deferred Tax Asset Liabilities Accounts Payable Unearned rent revenue Provision for annual leave Deferred Tax Liability 15 000 30,000 (3,000) 13,500 7,000 100,000 (40,000) ? 19,000 5,000 2,500 ? 12 500 40,000 (5,000) 10,500 7,500 100,000 (30,000) 3,400 16,000 3,500 2,000 5,200

The Statement of Financial Position of Hawkeye as at 30 June 2022 showed the following assets and liabilities: 2022 2021 $ $ Assets Cash Accounts receivables Allowance for doubtful debts Inventory Rent Receivable Plant Accumulated Depreciation - Plant Deferred Tax Asset Liabilities Accounts Payable Unearned rent revenue Provision for annual leave Deferred Tax Liability 15 000 30,000 (3,000) 13,500 7,000 100,000 (40,000) ? 19,000 5,000 2,500 ? 12 500 40,000 (5,000) 10,500 7,500 100,000 (30,000) 3,400 16,000 3,500 2,000 5,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The statement of financial position of Mackay Ltd as at 30 June 2021 showed the following assets and liabilities. Assets Cash Inventories Accounts Receivables Allowance for Doubtful Debts Plant Accumulated Depreciation- Plant Deferred Tax Asset Liabilities Accounts Payable Provision for Long Service Leave Provision for Annual Leave Rent Received in Advance Deferred Tax Liability Additional information 2021 8 000 17 000 50 000 (5 500) 50 000 (26 000) ? 29 000 6 000 4 000 2 500 ? 2020 8 500 15 500 48 000 (4 000) 50 000 (21 000) 4 050 26 000 4 500 3 000 2 000 3 150 • Accumulated depreciation of plant for tax purposes was $39 000 at 30 June 2021. • The tax rate is 30%. Required: Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts.
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