Required a. Prepare a deferred tax worksheet to identify the temporary differences arising in respect of the assets and liabilities in the statement of financial position, and to calculate the balance of the deferred tax liability and deferred tax asset accounts at 30 June 2021. Assume the opening balances of the deferred tax accounts were $3,000 for Deferred Tax Assets and $2,500 for Deferred Tax Liability. b. Prepare the journal entry to adjust the deferred tax account.
The following information was extracted from the records of SydMel Ltd for the year ended
30 June 2021.
SydMel Ltd
As at 30 June 2021
Assets
Accounts receivables $26,000
Allowance for doubtful debts 2,500 $23,500
Equipment 150,000
Accumulated depreciation – Equipment (20% per year) 30,000 120,000
Liabilities
Interest Payable 2,000 2,000
Provision for employee benefits 5,000 5,000
Additional information
• The allowed deductible tax depreciation rate for Equipment is 25%.
• None of the employee benefits has been paid. It is not deductible for tax purposes until
it is actually paid.
• The tax rate is 30%.
Required
a. Prepare a
respect of the assets and liabilities in the statement of financial position, and to
calculate the balance of the
30 June 2021. Assume the opening balances of the deferred tax accounts were $3,000
for
b. Prepare the
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