Kamalnayan Ltd records the following extract from the financial statements for the year ended 30 Junecurrent year.Kamalnayan Ltd: Statement of comprehensive income for the year ended 30 June 2019Profit before taxIncome tax expenseProfit for the yearBalance at 30 June 2017Profit for the yearDistributionsBalance at 30 June 2018Denfit for the unstanding, 30 June 20102019650017400(5220)Kamalnayan Ltd: Statement of changes in equity for the year ended 30 June 2019Share capital Retained earnings Total65001218028609800(3900)876020181310014000(4200)980093609800(3900)1526012:30 Balance at 30 June 2018Profit for the year ending 30 June 2019DividendsBalance at 30 June 2019650076500A-(3900)8760B I EE12180(3900)17040(3900)The accountants also noted the following additional information:During the preparation of the 2019 financial statements, it became apparent that electricity expens-of $2800 had been omitted when the 2018 financial statements were prepared. The Tax Office hasindicated that electricity expense will be permitted as a deduction for tax purposes. The tax rate is 3per cent.15260Prepare the statement of profit or loss and other comprehensive income and statement ofchanges in equity as per the relevant accounting standards.201912180(3900)201823540<>> X QKamalnayan Ltd statement of comprehensive income for the year ended 30 June 2019

Statement of Comprehensive Income shows the profit of the company after all the expenses including…

Balance at 30 June 2018 Profit for the year ending 30 June 2019 Dividends Balance at 30 June 2019 6500 6500 8760 12180 (3900) 17040 15260 12180 (3900) 23540 The accountants also noted the following additional information: During the preparation of the 2019 financial statements, it became apparent that electricity expens- of $2800 had been omitted when the 2018 financial statements were prepared. The Tax Office has indicated that electricity expense will be permitted as a deduction for tax purposes. The tax rate is 3 per cent. Prepare the statement of profit or loss and other comprehensive income and statement of changes in equity as per the relevant accounting standards.

Balance at 30 June 2018 Profit for the year ending 30 June 2019 Dividends Balance at 30 June 2019 6500 6500 8760 12180 (3900) 17040 15260 12180 (3900) 23540 The accountants also noted the following additional information: During the preparation of the 2019 financial statements, it became apparent that electricity expens- of $2800 had been omitted when the 2018 financial statements were prepared. The Tax Office has indicated that electricity expense will be permitted as a deduction for tax purposes. The tax rate is 3 per cent. Prepare the statement of profit or loss and other comprehensive income and statement of changes in equity as per the relevant accounting standards.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

i have completed this in excel but would like to compare my answers
During the preparation of financial statement for Master Ltd for 2023 it was discovered thatan amount of $22,000, incurred in September 2021 and payable to an overseas supplier, wasoverlooked and not paid or provided for in the financial statement ending 30 June 2022. Theamount is considered to be material and will be permitted as a deduction for tax purposes(tax rate 30%).Required:i) Prepare the necessary journal entry to correct this error.
Romie Ltd is preparing accounts for the year ended 31 December 20X5. The company has an estimated tax charge of $35,000 for the year ended December 20X5. The trial balance includes an entry of $2,000 relating to an over provision of tax in the previous financial year. What is the charge for tax in the statement of profit or loss for the year ended December 20X5?
COD Corporation's accounting records include the following items, listed in no particular order, at December 31, 2025: View the data. The income tax rate for COD Corporation is 21%. Prepare COD Corporation's income statement for the year ended December 31, 2025. Omit earnings per share. Use the multi-step format. Prepare the income statement through the income before taxes, then complete the income statement through the net income. (Use parentheses or a minus sign to enter amounts for Other Expenses.) COD Corporation Income Statement Year Ended December 31, 2025 Data Income Before Income Taxes - Other Income and (Expenses) $ Net Sales Revenue Gain on Discontinued Operations (12,000) 167,800 2,400 Cost of Goods Sold 80,000 Operating Expenses 55,000 Print Done ☑
At the beginning of 2021, Pitman Co. had pretax financial income of $1,200,000. Additionally, there was a timing difference of $300,000 due to an accounts receivable that will not be collected until the following year. The tax rate us 30%. A. Calculate the total taxable income for 2021. B. Calculate Income tax expense, income tax payable, and the deferred amount for 2021, and create the journal entry.
As of December 31, 2024, Duffy Company believed it was probable that an unfavorable outcome would result from a dispute with the Massachusetts State tax authorities. In-house tax experts estimated that Duffy would owe between $2113 - $4362 of additional taxes, with $3369 being the most likely amount. What is the journal entry, if any, that Duffy should record to reflect this in the 2024 financial statements? a. A journal entry is not booked since this is a gain contingency. b. Debit to Contingent Loss for $3369; Credit to Contingent Liability for $3369 c. Debit to Contingent Loss for $2113; Credit to Contingent Liability for $2113 d. Debit to Contingent Liability for $4362; Credit to Contingent Loss for $4362
Dan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trial balances show the following balance: Income tax payable on 1 January 20X7 Income tax paid M 337,850 £ 351,083 The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability. The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plc should record the following journal at 31 December 20X7 A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid £337,050 B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid £324,617 C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid £337,850 D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid £351,083
During your audit of the books of Colorado Corporation for the year ended December 31, 2021, you discovered that certain accrued income and expenses were overlooked at the end of 2019, 2020 and 2021. Not recognized at year end 2019 2020 2021 Accrued interest income 2,000 3,000 Accrued salaries expense 12,000 6,000 Accrued rent payable 20,000 Net income for the year 500,000 550,000 600,000 Retained earnings at year end 8,300,000 8,800,000 9,200,000 REQUIRED: Based on the foregoing, compute the corrected balances of following: Net income for 2019 Net income for 2020 Net income for 2021
Ocean Ltd recorded an accounting profit before tax of $50,000 for the year ended 30 June 2020. Included in the accounting profit were the following income and expenses: Rent revenue Interest revenue Bad debts expense An extract of the Statement of Financial Position for 30 June 2020 revealed the following: Accounts receivable Allowance for doubtful debts Interest receivable Rent Revenue in Advance $46,000 $28,000 $34,000 The company tax rate is 30%. 2020 $96,000 ($44,000) $40,000 $22,000 2019 $56,000 ($18,000) $24,000 $38,000 Required: Calculate taxable income (loss) and record the necessary journal entry for current income tax expense for the year ended 30 June 2020.
Required information [The following information applies to the questions displayed below.] Glennelle's Boutique Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2019 are issued in May 2020 and are payable in July 2020. c-2. Assume that the actual tax bill, received in May 2020, was for $7,500. Record the journal entry to show the effects of the appropriate adjustment to the amount previously accrued. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 No Event 1 X Answer is complete but not entirely correct. General Journal Real estate tax expense Real estate taxes payable Debit 2,500 X Credit 2,500 x O Apr 8
PROBLEM 8 - AUDITING PROBLEMCompute the following:1. The corrected pre-tax profit for 20212. What is the net effect of the foregoing errors on the total assets at December 31, 2021? 3. What is the total understatement of the total liabilities at December 31, 2021?
Balance Sheet Presentation Thiel Company reports the following deferred tax items at the end of 2019: Deferred TaxItem # AccountBalance Related Asset or LiabilityCreating the Deferred Tax Item 1 $6,700 debit Current asset 2 7,200 credit Current liability 3 10,600 debit Noncurrent asset 4 15,500 credit Noncurrent liability Required: Show how the preceding deferred tax items are reported on Thiel's December 31, 2019, balance sheet. THIEL COMPANYBalance Sheet (Tax Items)December 31, 2019 Noncurrent Liabilities Deferred Tax asset or liability $