BUS356 Contemporary Financial Accounting

Requirements:

1) Read the case study facts

2) Complete your written notes and workings (these are not to be submitted)

3) Complete your word file making sure all requirements have been completed. Clearly label and underline each section as follows:

Note - References are not necessary.

Other information:

For tax purposes, depreciation on machinery is $14,000 and for vehicles $300, for the year ended 30 June 2019.

Doubtful debts, annual leave and service warranties are expensed in the year ending 30 June 2019 but are not tax deductible for tax purposes until paid.

Zeus Ltd has accrued annual leave entitlements of $1,800 in calculating net profit for the year ended 30 June 2019.

Service warranty expense is only deductible as a tax deduction when claimed by customers.

The company accrues doubtful debts expense as soon as it appears on a customer’s account as uncollectible. However, the bad debt is not allowable as a tax deduction until all avenues to collect the account have been exhausted.

The tax rate is 30% and taxable income is $79,500.

Requirements:

A) Complete a deferred tax worksheet.

B) Complete the entry to account for taxes 

C) Complete a statement of comprehensive income showing as much detail as possible.