The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities. 2021 Assets Cash 3,000 Accounts receivables 85,000 Allowance for doubtful debts (4,000) Inventory 9,500 Prepaid insurance 3,600 Plant 60,000 Accumulated Depreciation - Plant (15,000) Deferred Tax Asset (at 30/06/2020: $1,270) Liabilities Accounts Payable 75,000 Provision for Long service leave 2,000 Revenue received in advance 3,000 Deferred Tax Liability (at 30/06/2020: $800) Additional information Accumulated depreciation of plant for tax purposes was $20,000 as at 30 June 2021. a. b. The tax rate is 30% Required Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2021.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the
following assets and liabilities.
2021
Assets
2$
Cash
3,000
Accounts receivables
85,000
Allowance for doubtful debts
(4,000)
Inventory
9,500
Prepaid insurance
3,600
Plant
60,000
Accumulated Depreciation - Plant
(15,000)
Deferred Tax Asset (at 30/06/2020:
$1,270)
?
Liabilities
Accounts Payable
75,000
Provision for Long service leave
2,000
Revenue received in advance
3,000
Deferred Tax Liability (at 30/06/2020:
$800)
?
Additional information
а.
Accumulated depreciation of plant for tax purposes was $20,000 as at 30
June 2021.
b.
The tax rate is 30%
Required
Prepare the deferred tax worksheet and journal entries to adjust deferred tax
accounts as at 30 June 2021.
Transcribed Image Text:The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities. 2021 Assets 2$ Cash 3,000 Accounts receivables 85,000 Allowance for doubtful debts (4,000) Inventory 9,500 Prepaid insurance 3,600 Plant 60,000 Accumulated Depreciation - Plant (15,000) Deferred Tax Asset (at 30/06/2020: $1,270) ? Liabilities Accounts Payable 75,000 Provision for Long service leave 2,000 Revenue received in advance 3,000 Deferred Tax Liability (at 30/06/2020: $800) ? Additional information а. Accumulated depreciation of plant for tax purposes was $20,000 as at 30 June 2021. b. The tax rate is 30% Required Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2021.
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