Transactions are shown in attached file.
Prepare worksheets and the three main financial statements in good form for the newly formed Tower Company. Tower Company started business on 1 July 2002 with a fiscal year end of 30 June 2003. It uses FIFO-periodic inventory system and straight-line depreciation.
It uses accrual accounting and follows Australian GAAP. Assume that tax payable/expense is 'Net Income Before Tax' multiplied by a flat 30% tax rate (there is no deferred tax issues). Assume that the Cash component of COGS is $2,000,000 as detailed below. Ignore bad debts and interest income. (Ref to attachment)© BrainMass Inc. brainmass.com March 4, 2021, 5:36 pm ad1c9bdddf
The solution presents the worksheet and the three financial statements in good form for Tower Company for the fiscal year end June 30, 2003.