Question 1Consider following two independent scenarios:» During the preparation of financial statement for MasterLtd for 2023 it was discovered that an amount of $22,000,incurred in September 2021 and payable to an overseassupplier, was overlooked and not paid or provided for inthe financial statement ending 30 June 2022. The amountis considered to be material and will be permitted as adeduction for tax purposes (tax rate 30%).Required:a Prepare the necessary journal entry to correct thiserrorOn 30 June 2023, the end of the current reporting period,Master Ltd decided, using the information obtained overthe past few years, to revise the useful life of a Machineacquired 2 years earlier for $100,000. The useful life wasrevised from being a total of 10 years to being a total of14 years. The machine was depreciated on straight-linebasis over its useful life and have no residual value. Nodepreciation has been provided in the currentyear.Required:Prepare the journal entry to account for the change inaccounting estimate.Prepare an appropriate supporting note assuming thatchange in accounting estimate had a material effect onfinancial performance for the period.

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Question 1 Consider following two independent scenarios: During the preparation of financial statement for Master Ltd for 2023 it was discovered that an amount of $22,000, incurred in September 2021 and payable to an overseas supplier, was overlooked and not paid or provided for in the financial statement ending 30 June 2022. The amount is considered to be material and will be permitted as a deduction for tax purposes (tax rate 30%). Required: a Prepare the necessary journal entry to correct this error

Question 1 Consider following two independent scenarios: During the preparation of financial statement for Master Ltd for 2023 it was discovered that an amount of $22,000, incurred in September 2021 and payable to an overseas supplier, was overlooked and not paid or provided for in the financial statement ending 30 June 2022. The amount is considered to be material and will be permitted as a deduction for tax purposes (tax rate 30%). Required: a Prepare the necessary journal entry to correct this error

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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