The accounting profit before tax of Lindfield Ltd for the year ended 30 June 2022 was $150,000, including the following items of income and expense. $ Government grant (exempt from tax) 5,000 Entertainment expense (non-deductible) 14,000 Doubtful debt expense 8,000 Depreciation of Equipment (10%) 35,000 Long service leave expense 13,000 Interest expense 8,000 Additional Information 1. The tax depreciation rate for equipment is 15% p.a., on a straight-line basis. 2. Bad debt written-off during the year was $3,000. 3. No long service leave was paid for the year 2022. 4. The interest payable account had a zero balance (nil balance) at the end of 30 June 2022. 5. The company tax rate is assumed to be 30%. Required Prepare the current tax worksheet and the journal entry to recognise the current tax at 30 June 2022
The accounting profit before tax of Lindfield Ltd for the year ended 30 June 2022 was $150,000, including the following items of income and expense.
|
|
$ |
|
Government grant (exempt from tax) |
5,000 |
|
Entertainment expense (non-deductible) |
14,000 |
|
Doubtful debt expense |
8,000 |
|
|
35,000 |
|
Long service leave expense |
13,000 |
|
Interest expense |
8,000 |
Additional Information
1. The tax depreciation rate for equipment is 15% p.a., on a straight-line basis.
2.
3. No long service leave was paid for the year 2022.
4. The interest payable account had a zero balance (nil balance) at the end of 30 June 2022.
5. The company tax rate is assumed to be 30%.
Required
Prepare the current tax worksheet and the
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