Please make a balance sheet along with deffered tax and valuation equity Use the
ID: 2331720 • Letter: P
Question
Please make a balance sheet along with deffered tax and valuation equity
Use the information below to construct the Dec. 31, 2016 Balance Sheet and deferred tax and valuation equity worksheets. Note: Not all items will be used all balances are as of 12/31/16, unless otherwise stated a. Cash on hand and in checking account b. Market value of all equipment c. 2015 Income taxes paid in 2016 d. Cash operating expenses paid in 2016 e. Principal portion of 15-year loan due in 2017 f. Principal paid on 15-year loan during 2016 g. Inventories: Supplies h. Insurance premiums for 2017 paid in Dec. 2016 i Investment in local brewery made in 2006 for $50,000, 35,000 250,000 32,000 518,000 13,000 12,000 5,000 20,500 estimated market value of 65,000 as of 12/31/16 j. Change in accounts payable during 2016 k. Inventories: Completed goods 1. Principal balance on operating (short-term) loan m. Accrued interest on 15-year note n. Accrued interest on operating (short-term) loan o. Rent for January 2017, paid in Dec. 2016 p. Accumulated depreciation on equipment 1,500 16,000 10,000 8,600 900 4,500 50,000 21,000 g. Accrued income, social security, and payroll taxes 4,000Explanation / Answer
BALANCE SHEET AS AT DEC 31, 2016
Particulars
As at Dec 31,2016
ASSETS
(1)
Non - current assets
Property, Plant and Equipment
(At Market Value)
2,50,000
Cost (310000-50000) = 250000
Total non - current assets
2,50,000
(2)
Current assets
Inventories
Supplies
5000
Completed Goods
16000
21,000
Financial assets
Investment
Mutual Fund
(At Market Value)
50,000
Cost - 35000
Local Brewery
(At Market Value)
65,000
Cost - 50000
Cash and cash equivalents
35,000
( Cash balance)
Other Financial Assets
21,000
( Accrued Income /Advances)
Other Current Assets
29,000
( Prepaid exps - 20500+4500+4000)
Total current assets
2,21,000
Total Assets
4,71,000
EQUITY AND LIABILITIES
EQUITY
Equity share capital
1,00,000
(Capital)
Other equity (Retained Earnings)
1,13,000
( Balancing Figure)
Total equity
2,13,000
LIABILITIES
(1)
Non - current liabilities
Financial liabilities
(i)
Borrowings
2,10,000
( 15 year loan 223000-13000)
Deferred tax liabilities (net)
5,000
Total non - current liabilities
*
2,15,000
(2)
Current liabilities
Financial liabilities
Borrowings
Current part of Long term loan
13,000
Short Term Loan
10,000
Trade payables
8,000
( A/c payable)
Other financial liabilities
Accrued Intt on Loans
9,500
( 8600 + 900)
Other current liabilities
2,500
( Bills pending for legal services recd)
Total current liabilities
43,000
Total Equity & Liabilities
4,71,000
Calculation of DTL/DTA
Assets
Carrying Amount
Tax base
Temporary Difference
Tax rate
DTA/DTL
Property, Plant and Equipment
250000
260000
10000
25%
2500
DTA
Investment-Brewery
65000
50000
-15000
25%
-3750
DTL
Investment- Mutual Fund
50000
35000
-15000
25%
-3750
DTL
NET
-5000
DTL
Valuation - Equity
Equity share capital
1,00,000
Other equity (Retained Earnings)
1,13,000
Total equity
2,13,000
BALANCE SHEET AS AT DEC 31, 2016
Particulars
As at Dec 31,2016
ASSETS
(1)
Non - current assets
Property, Plant and Equipment
(At Market Value)
2,50,000
Cost (310000-50000) = 250000
Total non - current assets
2,50,000
(2)
Current assets
Inventories
Supplies
5000
Completed Goods
16000
21,000
Financial assets
Investment
Mutual Fund
(At Market Value)
50,000
Cost - 35000
Local Brewery
(At Market Value)
65,000
Cost - 50000
Cash and cash equivalents
35,000
( Cash balance)
Other Financial Assets
21,000
( Accrued Income /Advances)
Other Current Assets
29,000
( Prepaid exps - 20500+4500+4000)
Total current assets
2,21,000
Total Assets
4,71,000
EQUITY AND LIABILITIES
EQUITY
Equity share capital
1,00,000
(Capital)
Other equity (Retained Earnings)
1,13,000
( Balancing Figure)
Total equity
2,13,000
LIABILITIES
(1)
Non - current liabilities
Financial liabilities
(i)
Borrowings
2,10,000
( 15 year loan 223000-13000)
Deferred tax liabilities (net)
5,000
Total non - current liabilities
*
2,15,000
(2)
Current liabilities
Financial liabilities
Borrowings
Current part of Long term loan
13,000
Short Term Loan
10,000
Trade payables
8,000
( A/c payable)
Other financial liabilities
Accrued Intt on Loans
9,500
( 8600 + 900)
Other current liabilities
2,500
( Bills pending for legal services recd)
Total current liabilities
43,000
Total Equity & Liabilities
4,71,000
Calculation of DTL/DTA
Assets
Carrying Amount
Tax base
Temporary Difference
Tax rate
DTA/DTL
Property, Plant and Equipment
250000
260000
10000
25%
2500
DTA
Investment-Brewery
65000
50000
-15000
25%
-3750
DTL
Investment- Mutual Fund
50000
35000
-15000
25%
-3750
DTL
NET
-5000
DTL
Valuation - Equity
Equity share capital
1,00,000
Other equity (Retained Earnings)
1,13,000
Total equity
2,13,000