Assessment 1 - Written Examination At 30 June 2014, E-Surfboards Limited had the following temporary differences: Page 659 The following information is available for the following year, the year ending 30 June 2015. E-Surfboards Limited depreciates computers over five years in its accounting records but over three years for tax purposes. The straight-line method is used. During the year E-Surfboards wrote off bad debts amounting to $15 000. Warranty costs of $70 000 were paid during the year. No amounts were paid for long-service leave during the year. The following information is extracted from the statement of financial position at 30 June 2015: There was no acquisition of plant and equipment during the year. The tax rate as at 30 June 2014 and 30 June 2015 was 30 per cent. REQUIRED (a) Calculate the amount of each of E-Surfboards' temporary differences, if any, at 30 June 2014, and state whether it is deductible or taxable. (b) What is the balance of the deferred tax liability and deferred tax asset, if any, as at 30 June 2014? (c) Calculate E-Surfboards' taxable income for the year ended 30 June 2015. (d) Prepare journal entries to record current tax and deferred tax for the year ended 30 June 2015 Assessment Mapping Checklist Learner Name/ID: ___________________________________ Performance & Knowledge Evidence C/NYC Comments Performance Evidence · access and accurately compile data and prepare reports for corporate entities that comply with: · relevant accounting standards · statutory and other relevant requirements of reporting bodies. Knowledge Evidence · identify and explain current business taxation requirements · identify and explain current financial legislation and statutory requirements relating to taxable transactions and reporting requirements · explain the key features of integrated computerised accounting systems · describe a range of methods and formats for presenting financial data · outline options, methods and practices for recording and reporting deductions, benefits and depreciation · identify and explain the key principles of double-entry bookkeeping and accrual accounting Comments: Signed by Learner: Date: Signed by Assessor: Date: Assessment 2 San Pedro Industries Presented below are selected accounts from the adjusted trial balance ($ Millions) for San Pedro Industries for June 30 of the current year. Debit Credit Accounts Receivable—trade $895 Building and Equipment 1425 Cash in bank—Operating 76 Interest Receivable 60 Installment receivables 120 Merchandise Inventory 100 Land 600 Notes receivable—Long term 475 Petty cash 12 Prepaid expenses current 46 Supplies 28 Patent 85 Accounts Payable—Trade 710 Accumulated Depreciation 375 Additional Paid in Capital 725 Allowance for Uncollectible Accounts 95 Cash Dividends Payable 50 Common Stock—$1 par value 90 Income tax payable 105 Notes payable—2 years 1000 Retained Earnings 85 Unearned Revenues—2 years 125 Cash.

1. Assessment 1 - Written Examination
At 30 June 2014, E-Surfboards Limited had the following
temporary differences:
Page 659
The following information is available for the following year,
the year ending 30 June 2015.
E-Surfboards Limited depreciates computers over five years in
its accounting records but over three years for tax purposes. The
straight-line method is used. During the year E-Surfboards
wrote off bad debts amounting to $15 000. Warranty costs of
$70 000 were paid during the year. No amounts were paid for
long-service leave during the year. The following information is
extracted from the statement of financial position at 30 June
2015:
There was no acquisition of plant and equipment during the
year.
The tax rate as at 30 June 2014 and 30 June 2015 was 30 per
cent.
REQUIRED
(a)
Calculate the amount of each of E-Surfboards' temporary
differences, if any, at 30 June 2014, and state whether it is
deductible or taxable.
(b)
What is the balance of the deferred tax liability and deferred tax
asset, if any, as at 30 June 2014?
(c)
Calculate E-Surfboards' taxable income for the year ended 30
June 2015.
(d)
Prepare journal entries to record current tax and deferred tax for

2. the year ended 30 June 2015
Assessment Mapping Checklist
Learner Name/ID: ___________________________________
Performance & Knowledge Evidence
C/NYC
Comments
Performance Evidence
· access and accurately compile data and prepare reports for
corporate entities that comply with:
· relevant accounting standards
· statutory and other relevant requirements of reporting bodies.
Knowledge Evidence
· identify and explain current business taxation requirements
· identify and explain current financial legislation and statutory
requirements relating to taxable transactions and reporting
requirements
· explain the key features of integrated computerised accounting
systems
· describe a range of methods and formats for presenting
financial data

3. · outline options, methods and practices for recording and
reporting deductions, benefits and depreciation
· identify and explain the key principles of double-entry
bookkeeping and accrual accounting
Comments:
Signed by Learner:
Date:
Signed by Assessor:
Date:
Assessment 2
San Pedro Industries
Presented below are selected accounts from the adjusted trial
balance ($ Millions) for San Pedro Industries for June 30 of the
current year.
Debit
Credit
Accounts Receivable—trade
$895
Building and Equipment
1425

4. Cash in bank—Operating
76
Interest Receivable
60
Installment receivables
120
Merchandise Inventory
100
Land
600
Notes receivable—Long term
475
Petty cash
12
Prepaid expenses current
46
Supplies
28
Patent
85
Accounts Payable—Trade
710
Accumulated Depreciation

5. 375
Additional Paid in Capital
725
Allowance for Uncollectible Accounts
95
Cash Dividends Payable
50
Common Stock—$1 par value
90
Income tax payable
105
Notes payable—2 years
1000
Retained Earnings
85
Unearned Revenues—2 years
125
Cash Dividends Declared
200
Income Summary
762
TOTALS
$4122
$4122

6. Required:
a) Prepare a classified balance sheet using the account format
for San Pedro Industries.
b) Prepare a classified balance sheet using the report format for
San Pedro Industries.
c) Prepare a classified balance sheet in IFRS-acceptable format
for San Pedro Industries.
Prepare journal entries to record current tax and deferred tax for
the year ended 30 June 2015
Assessment Mapping Checklist
Learner Name/ID: ___________________________________
Performance & Knowledge Evidence
C/NYC
Comments
Performance Evidence
· access and accurately compile data and prepare reports for
corporate entities that comply with:
· organisational policy and procedures
· relevant accounting standards
· statutory and other relevant requirements of reporting bodies.
Knowledge Evidence

7. · identify and explain current business taxation requirements
· identify and explain current financial legislation and statutory
requirements relating to taxable transactions and reporting
requirements
· discuss ethical considerations in relation to conflict of
interest, confidentiality and disclosure requirements
· explain the key features of integrated computerised accounting
systems
· describe a range of methods and formats for presenting
financial data
· outline options, methods and practices for recording and
reporting deductions, benefits and depreciation
· identify and describe the key requirements of organisational
policy and procedures relating to the preparation of financial
reports
· identify and explain the key principles of double-entry
bookkeeping and accrual accounting
· identify and explain business legal requirements relating to
delegated authorities, reporting periods and taxation payment
timings.

8. Comments:
Signed by Learner:
Date:
Signed by Assessor:
Date: