Bloomingdale Florists Pty Ltd - Australian Retail Company - Cost Price Replacement Price Market Selling Value - Accounting Assignment Help

Bloomingdale Florists Pty Ltd Accounting Assignment Help

Assignment Task:

Question 1:

Bloomingdale Florists Pty. Ltd. is an Australian Retail Company which operates a florist shop in Sydney. It is an Australian Resident Private Company for Tax Purposes. It is also a Small Business Entity for tax purposes. The Accounting Profit and Loss Statement for the year ended 30 June 2018 is as follows

The repairs of $15,000 consisted of painting the company premises for $5,000 and replacing the rotting wooden office windows with new steel windows for $10,000.

The company borrowed money from the bank to acquire the new depreciating assets. The loan was for 3 years and was taken out on 1 July 2017. The total borrowing costs of $3,000 were claimed as an accounting expense. The company had outstanding trade debts from retail sales of $20,000 on 30 June 2018. These were included in the sales figure in the Profit and Loss Statement. For the year ending 30 June 2018, the company received the following dividends which are not included in the profit and loss statement:

The Gifts were as follows:

· Royal Sydney Hospital

· Paramatta Eels League Club

$ 10,000

$10,000 Capital allowances for tax purposes amount to $10,000.

For accounting purposes the company values its closing stock using the LIFO Method. The Opening stock value for tax purposes was $50,000.

The FIFO Method however produces the following results for stock value at the end of the year:

Cost Price Replacement Price Market Selling Value

$ 52,000

53,000 54,000

· · Dividend from an Australian Resident company (80% franked)

· · Dividend from an Australian Resident company (100% franked)

· · Dividend from a Foreign Resident company (No tax withheld)

$9,000 $5,000 $1,000

(10) TheTaxCommissionerhasmadearulingregardingtheDirector’ssalariesandconsiders $40,000 to be a reasonable salary.

(11) Prior years’ income losses: The company has $20,000 unabsorbed income losses from the year ending 30 June 2017. The shareholding of the company has not changed since that time. However in July 2016 the company acquired a market research company.

REQUIRED:

Demonstrate the calculation process to determine the Company's Taxable Income and Tax Payable Liability for the year ended 30 June 2018. Note - You must give reasons for your inclusion or exclusion of any of the above listed items. If you fail to explain your inclusion or exclusion of any item, you will lose marks.

For example: $1,000 Tax Agent’s Fees – s. 25-5, and a brief discussion of the law in this context.

This Accounting Assignment  has been solved by our Accounting experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.