You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019. Cash Sales $950,000 Cost of Goods Sold $35,000 Amount received in advance for services to be performed in August 2019 $9,500 Rent expenses for year ended 30 June 2019 $9,000 Rent Prepaid for two months to 31 August 2019 $1,200 Doubtful debts expenses $1,200 Amount provided in 2019 for employees’ long-service leave entitlements $5,000 Goodwill impairment expenses $7,000 Required: Calculate the taxable profit and accounting profit for the year ending 30 June 2019.
You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019. Cash Sales $950,000 Cost of Goods Sold $35,000 Amount received in advance for services to be performed in August 2019 $9,500 Rent expenses for year ended 30 June 2019 $9,000 Rent Prepaid for two months to 31 August 2019 $1,200 Doubtful debts expenses $1,200 Amount provided in 2019 for employees’ long-service leave entitlements $5,000 Goodwill impairment expenses $7,000 Required: Calculate the taxable profit and accounting profit for the year ending 30 June 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019.
Cash Sales $950,000
Cost of Goods Sold $35,000
Amount received in advance for services to be performed in August 2019 $9,500
Rent expenses for year ended 30 June 2019 $9,000
Rent Prepaid for two months to 31 August 2019 $1,200
Doubtful debts expenses $1,200
Amount provided in 2019 for employees’ long-service leave entitlements $5,000
Required:
Calculate the taxable profit and accounting profit for the year ending 30 June 2019.
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