Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 July 2021.
The
|
|
2021 |
2020 |
|
Assets |
$ |
$ |
|
Cash |
15 000 |
12 500 |
|
|
30,000 |
40,000 |
|
Allowance for doubtful debts |
(3,000) |
(5,000) |
|
Inventory |
13,500 |
10,500 |
|
Rent Receivable |
7,000 |
7,500 |
|
Plant |
100,000 |
100,000 |
|
|
(40,000) |
(30,000) |
|
|
? |
3,400 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts Payable |
19,000 |
16,000 |
|
Unearned rent revenue |
5,000 |
3,500 |
|
Provision for annual leave |
2,500 |
2,000 |
|
|
? |
5,200 |
|
|
|
|
|
|
|
|
Additional information
a. Accumulated depreciation of plant for tax purposes was $55,000 as at 30 July 2021.
b. The tax rate is 30%.
Question
Prepare the deferred tax worksheet and
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