Legal Entities – FNSACC601

STUDENT ASSESSMENT

Prepare and Administer Tax Documentation for Legal Entities – FNSACC601

Case Study and Practical Assessment

Student Instructions

  1. Type all the answers in a word document if required.
  2. You can conduct internet research to answer these questions.
  3. Provide explanation of 2-3 lines when answering ‘Describe’ questions.
  4. Provide detailed workings for calculations questions.
  5. Provide answers in table format wherever possible.

Question 1 – Stephen John

Review the information provided regarding ‘Stephen John’ in appendix ‘Case Study – Stephen John’ and conduct the following.

  1. Create a checklist that would assist you to with identifying all the relevant details from your client.
  2. Create a cash flow summary for Stephen
  3. Create a depreciation schedule for Stephen
  4. Create a profit and loss statement for Stephen
  5. Create a balance sheet for Stephen
  6. Answer the following questions:
    1. What rate of tax should Stephen be paying?
    2. What is his charge for the Medicare levy and surcharge?
    3. What superannuation should Stephen have received?
    4. What was Stephen’s assessable income?
    5. What was Stephen’s tax payable or refund amount?
    6. Did Stephen have any fringe benefits? If so what were they?
    7. How would you calculate the fringe benefits for reporting purposes?
    8. Is there any payroll tax due or paid?
  7. Create a BAS for Stephen for 12 months.
  8. Lodge Stephens taxation through paper based lodgement form.
  9. Write a short summary of the financial position for Stephen.
  1. Explain the current financial position of the client
  2. Explain the required documents that need to be kept for current financial year
  3. Expected tax refund/payment from ATO
  4. Approval for lodgement

Question 2 – Royal Watch Ltd

Use a word processor to create one document with your responses to all parts. Ensure you title each section of your response to match the assignment designation.

Review the ‘Case Study – Royal Watch Ltd’ and ‘RWL Income Tax Return’ files provided in Appendix and conduct the following:

  1. In the Depreciation Schedule worksheet (Tab No: 3) calculate and enter the depreciation and balancing adjustments for the tax year 2014/15.
  2. In the Franking Account schedule worksheet (Tab No: 4) complete the franking account for the tax year 2014/15.
  3. In the Tax Computation schedule worksheet (Tab No: 5) prepare the tax computations for the tax year 2014/15.
  4. In the ITR Profit and Loss worksheet (Tab No: 6) complete the financial data for the tax year 2014/15, by using the information from the Income Statement.
  5. In the ITR Reconciliation worksheet (Tab No: 7) prepare the reconciliation to taxable income or loss for the tax year 2014/15, by using the information from the Tax Computation worksheet.
  6. In the ITR Financial Information worksheet (Tab No: 8) enter the financial data for the tax year 2014/15, by using the information from other schedules.
  7. In the ITR Calculation Statement worksheet (Tab No: 9) calculate the tax amount due or refundable for the tax year 2014/15, by using the information from other schedules.

Appendix

Case Study – Stephen John Case Study – Royal Watch Ltd
RWL Income Tax Return

References / recommended resources

Prepare and administer tax documentation for legal entities – FNSACC601, Enhance Your Future.

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