Assessment Task – Tutorial QuestionsUnit Code: HI5020Unit Name: Corporate AccountingAssignment:...

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Assessment Task – Tutorial QuestionsUnit Code: HI5020Unit Name: Corporate AccountingAssignment: Tutorial Questions 2Due: 11:30pm 26th June 2020Weighting: 25%Total Assignment Marks: 50 marksPurpose: This assignment is designed to assess your level of knowledge of the key topics covered in this unitUnit Learning Outcomes Assessed:1. Examine conceptual issues and the sources of authority for the accounting requirements which apply to reporting by Australian companies and corporate groups, including Company Law, International and Australian Accounting Standards, and Stock Exchange requirements;2. Critically analyse and interpret the financial statements and other disclosures produced by Australian companies and corporate groups;3. Apply Australian Accounting Standards and Corporate Legislation to the financial reporting processes of a range of corporate forms including companies and joint ventures;4. Evaluate financial accounting problems and select appropriate accounting strategies for the accounting entity;5. Prepare accounting reports for companies and other corporate forms that meet the compliance requirements of the professional and legal bodies in Australia;6. Make judgments about appropriate use of accounting standards and accurately apply appropriate treatments and communicate these outcomes to a diverse range of stakeholders.

Harshit · Accepted Answer

CORPORATE ACCOUNTING
	Serial Number
	Contents
	Page Number
	1.
	Answer to Question 1
	1-2
	2.
	Answer to Question 2
	3
	3.
	Answer to Question 3 
	4-6
	4.
	Answer to Question 4
	7-8
	5.
	Answer to Question 5
	9
	6.
	Referencing
	10
ANSWER TO QUESTION 1
a) The taxable income and income tax payable for the year to 30 June 2020 are as follows:
	Calculation of current tax for the year ended 30.06.2020
	
	Particulars 
	Amount ($)
	Amount ($)
	Profit before Income Tax
	 
	              80,000 
	Add:
	 
	 
	Doubtful Debt Expenses
	                   3,000 
	 
	Depreciation
	                   7,000 
	 
	Long- service Leave Expense
	                   4,000 
	              14,000 
	 
	 
	              94,000 
	Less:
	 
	 
	Bad debts written off
	                   2,000 
	 
	Long- service Leave Expense
	                          -   
	 
	Depreciation
	                   8,000 
	              10,000 
	Taxable Income
	 
	              84,000 
	Current Tax Liability
	 
	              25,200 
b) Deferred Tax for the year:
Tax depreciation greater than depreciation expense
Deferred tax liability Increase in deferred tax liability = ($8 000 –$7 000) x 30% = $300
Doubtful debts expense greater than bad debts written off
Deferred tax asset Increase in deferred tax asset = ($3 000 –$2 000) x 30% = $300
Long service leave expense greater than long service leave paid
Deferred tax asset Increase in deferred tax asset = ($4 000 –$0) x 30% = $1 200
c) Journal Entries for tax are as follows:
	Date
	Particulars
	Dr/Cr
	Amount
	Amount
	
	
	
	($)
	($)
	1
	Income Tax Expense A/c
	Dr
	      25,200 
	 
	 
	    To Current Tax Liability A/c
	Cr
	 
	      25,200 
	 
	(Being fees earned on credit)
	 
	 
	 
	 
	 
	
	 
	 
	2
	Deferred Tax Asset A/c
	Dr
	        1,500 
	 
	 
	    To Deferred Tax Liability A/c
	Cr
	 
	           300 
	 
	    To Income Tax Expense A/c
	Cr
	 
	        1,200 
	 
	(Being Deferred Tax asset created)
	 
	 
	 
d) Deferred Tax Liability closing balance = opening + increase = 18,000 + 300 = $18,300
Deferred Tax Asset closing balance = opening + increase = 15,000 + 1,500 = $16,500
ANSWER TO QUESTION 2
Journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition:
	Date
	Particulars
	Dr/Cr
	Amount
	Amount
	
	
	
	($)
	($)
	01.07.2019
	Machinery A/c
	DR
	      67,000 
	                 -   
	 
	Fixture & Furniture A/c
	DR
	      68,000 
	                 -   
	 
	Vehicles A/c
	DR
	      35,000 
	                 -   
	 
	Current Assets A/c
	DR
	      12,000 
	                 -   
	 
	Goodwill (Note-1) A/c
	DR
	      28,000 
	                 -   
	 
	    To Current Liabilities A/c
	CR
	              -   
	         18,000 
	 
	    To Share Capital A/c (80,000*1)
	CR
	              -   
	         80,

Assessment Task – Tutorial Questions Unit Code: HI5020 Unit Name: Corporate Accounting Assignment : Tutorial Questions 2 Due : 11:30pm 26th June 2020 Weighting: 25% Total Assignment Marks: 50 marks...

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