An entry is required in the General Journal to declare a dividend, see page 110 text, we did this in class. Penalty 1 mark
The entry Dr Retained earnings, Cr Dividend Payable is incorrect as the Credit entry is ‘Final dividend declared’, again on page 110 penalty 1 mark
The revaluation of the Building does not show the entries for Accumulated Depreciation, penalty 2 marks , see page 104, 105
The Retained profits ledger account, no date, no penalty this time, You have not entered and updated the ‘balance’ column.
Question 2 must be submitted again, both parts (a) and (b)
Question 3, again, no date
Calculation for DTA’s is correctCalculation for DTL’s is correct
Entries for Income Tax Expense and Income Tax payable in General Journal are incorrect.
You had correctly calculated the correct figure for Income Tax Expense as the $87,400 the difference between the true Income Tax Expense figure and the amount of $140,000 that had already been paid.
The adjusted Accounting Profit after permanent differences was $758,000, you correctly calculated this.
Then for the calculation of Income Tax Payable you needed to start with this $758,000 and add back the accounting expenses. These total $969,000, check this for yourself. So $758,000 + $969,000 = $1,727,000.
From $1,727,000 you deduct the taxation expense claims of $960,000 (again, check this yourself) This gives taxable income of $767,000, tax on this is $230,100. You have paid $140,000, the difference is $230,1000 less $140,000 = $90,100 and this is the figure in the General Journal for Income Tax Payable.
Attachments:
5549163_1_fnsacc514-at-3-of-5-1-amjad.docx
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