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Please help answer questions 21-24 Question 21 Calculate the lease liability balance as at 31 December 2020 of Looter Limited using the amortization table approach. Question 21 options: 1) R43 797 2) R50 367 3) R6 092 4) R87 288 Question 22 Calculate the finance charges amount as at 31 December 2023 of Looter Limited using the amortization table approach. Question 22 options: 1) R35 100 2) R2 181 3) R12 500 4) R3 191 Question 23 Calculate the capital repayment amount of Looter Limited as at 31 December 2022 using the amortization table approach. Question 23 options: 1) R29 008 2) R40 020 3) R50 000 4) R17 250 Question 24 Calculate the finance charges amount that is deducted by Looter Limited as at 31 December 2023, when calculating taxable income using statement of profit & loss approach.

Please help answer questions 21-24 Question 21 Calculate the lease liability balance as at 31 December 2020 of Looter Limited using the amortization table approach. Question 21 options: 1) R43 797 2) R50 367 3) R6 092 4) R87 288 Question 22 Calculate the finance charges amount as at 31 December 2023 of Looter Limited using the amortization table approach. Question 22 options: 1) R35 100 2) R2 181 3) R12 500 4) R3 191 Question 23 Calculate the capital repayment amount of Looter Limited as at 31 December 2022 using the amortization table approach. Question 23 options: 1) R29 008 2) R40 020 3) R50 000 4) R17 250 Question 24 Calculate the finance charges amount that is deducted by Looter Limited as at 31 December 2023, when calculating taxable income using statement of profit & loss approach.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please help answer questions 21-24 Question 21 Calculate the lease liability balance as at 31 December 2020 of Looter Limited using the amortization table approach. Question 21 options: 1) R43 797 2) R50 367 3) R6 092 4) R87 288 Question 22 Calculate the finance charges amount as at 31 December 2023 of Looter Limited using the amortization table approach. Question 22 options: 1) R35 100 2) R2 181 3) R12 500 4) R3 191 Question 23 Calculate the capital repayment amount of Looter Limited as at 31 December 2022 using the amortization table approach. Question 23 options: 1) R29 008 2) R40 020 3) R50 000 4) R17 250 Question 24 Calculate the finance charges amount that is deducted by Looter Limited as at 31 December 2023, when calculating taxable income using statement of profit & loss approach. Question 24 options: 1) (R6 092) 2) (R3 191) 3) (R8 729) 4) (R11 126)
ADDITIONAL INFORMATION: The profit before tax of Looter Limited amounted to R200 000 for the year ended 31 December 2020, before taking into account the above transactions. Looter Limited and Giptor Limited calculates depreciation on all motor vehicles at 20% per annum on the straight-line basis. Wear and tear on motor vehicles is calculated at 25% per annum on the straight-line basis. Income tax is calculated at 30% and VAT at 15% • Looter Limited and Giptor Limited are both registered for VAT. YOU ARE REQUIRED TO: 1. Prepare the amortization table for delivery vehicle A. 2. Calculate the current tax expense and deferred tax of Looter Limited for the year ended 31 December 2020. 3. Calculate the deferred tax balance in the statement of financial position of Looter Limited for the year ended 31 December 2020 using the statement of financial position approach. 4. Prepare the journal entries of Looter Limited for the year ended 31 December 2020. 5. Prepare and disclose the notes to the annual financial statements of Looter Limited for the year ended 31 December 2020, so as to comply with International Financial Reporting Standards. • Maturity analysis of future lease payments Other expenses relating to leases not included elsewhere in this note
Transcribed Image Text:ADDITIONAL INFORMATION: The profit before tax of Looter Limited amounted to R200 000 for the year ended 31 December 2020, before taking into account the above transactions. Looter Limited and Giptor Limited calculates depreciation on all motor vehicles at 20% per annum on the straight-line basis. Wear and tear on motor vehicles is calculated at 25% per annum on the straight-line basis. Income tax is calculated at 30% and VAT at 15% • Looter Limited and Giptor Limited are both registered for VAT. YOU ARE REQUIRED TO: 1. Prepare the amortization table for delivery vehicle A. 2. Calculate the current tax expense and deferred tax of Looter Limited for the year ended 31 December 2020. 3. Calculate the deferred tax balance in the statement of financial position of Looter Limited for the year ended 31 December 2020 using the statement of financial position approach. 4. Prepare the journal entries of Looter Limited for the year ended 31 December 2020. 5. Prepare and disclose the notes to the annual financial statements of Looter Limited for the year ended 31 December 2020, so as to comply with International Financial Reporting Standards. • Maturity analysis of future lease payments Other expenses relating to leases not included elsewhere in this note
The following information relating to Looter Limited and Giptor Limited is presented to you: Looter Limited is involved in the retail sector across South Africa. The company's financial year ends on 31 December. Looter Limited acquired a delivery vehicle and a computer equipment under lease agreements: Transaction 1- Delivery vehicle: This delivery vehicle was acquired under a lease agreement from Giptor Limited for a qualifying purpose. Details of the lease agreement are as follows: Commencement date of the lease: 1 January 2020 Total present value of lease instalments (including VAT): R111 262 Effective interest rate: 10% per annum Lease instalments are payable in arrears on 31 December and consist of 4 annual lease instalments of R35 100 each. The lessor finances the VAT. According to the agreement the ownership of the delivery vehicle would be carried over to Looter Limited at the end of the lease agreement. Transaction 2 - Computer equipment: This computer equipment was acquired under a lease agreement from Giptor Limited for a qualifying purpose. The computer equipment is considered as a low value asset. Details of the lease agreement are as follows: 1 January 2020 R34 500 Commencement date of the lease Cost price (including VAT) The lease instalments are payable annually in arrears and consist of: 2 annual instalments of R11 500 each (including VAT) 2 annual instalments of R5 175 each (including VAT) 1 annual instalment of R4 600 each (including VAT) Looter Limited will not acquire ownership of the computer equipment at the end of the lease term according to the lease agreement.
Transcribed Image Text:The following information relating to Looter Limited and Giptor Limited is presented to you: Looter Limited is involved in the retail sector across South Africa. The company's financial year ends on 31 December. Looter Limited acquired a delivery vehicle and a computer equipment under lease agreements: Transaction 1- Delivery vehicle: This delivery vehicle was acquired under a lease agreement from Giptor Limited for a qualifying purpose. Details of the lease agreement are as follows: Commencement date of the lease: 1 January 2020 Total present value of lease instalments (including VAT): R111 262 Effective interest rate: 10% per annum Lease instalments are payable in arrears on 31 December and consist of 4 annual lease instalments of R35 100 each. The lessor finances the VAT. According to the agreement the ownership of the delivery vehicle would be carried over to Looter Limited at the end of the lease agreement. Transaction 2 - Computer equipment: This computer equipment was acquired under a lease agreement from Giptor Limited for a qualifying purpose. The computer equipment is considered as a low value asset. Details of the lease agreement are as follows: 1 January 2020 R34 500 Commencement date of the lease Cost price (including VAT) The lease instalments are payable annually in arrears and consist of: 2 annual instalments of R11 500 each (including VAT) 2 annual instalments of R5 175 each (including VAT) 1 annual instalment of R4 600 each (including VAT) Looter Limited will not acquire ownership of the computer equipment at the end of the lease term according to the lease agreement.
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