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ATO forms that you will require for this assessment are available for download at the following link: https://iorder

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ATO forms that you will require for this assessment are available for download at the following link: https://iorder.com.au/publication/searchpublications.aspx?1=1&cid=100103&t=100103

Scenario:

A new client Stephen John Murphy has arrived at your office. Your receptionist has greeted him, provided him with coffee and has ushered him into the interview room. During the initial interview you identify that he is a sole trader and needs to lodge a tax return. The following information is provided by Stephen:

• ? He is an Australian resident
• ? Has not changed his name since the last return
• ? DOB: 15/12/1975
• ? Address: 15 Kangaroo Lane, Bentmore Victora 8888
• ? Post address: PO Box 555 Bentmore Victoria 8888
• ? TFN: 666 666 666
• ? ABN: 12 222 222 222
• ? Ph: 03 555 5555
• ? Sales for the year: $294,423
• ? Expenditure: $262,452
• ? Personal drawings: $32,000
• ? Stephen also received income from a rental property of $$22,000
• ? Stephen paid mortgage payments on his rental property at $256 per week
• ? Stephen had repairs to his rental property totaling $2,435
• ? Insurance for rental property: $374
• ? Bank interest: $231
• ? Stephen is registered for GST
• ? Stephen purchased a new laptop computer and telephone for work purposes. $2500 and $1250 respectively
• ? Stephen has $12,400 outstanding for debtors
• ? Stephen has $2,300 outstanding to creditors
• ? Private health insurance: Yes with no loading
• ? Stephen received a box seat at the Football from a client with a value of $2000

Now you must complete the following activities:

Task 1

Create checklist that would assist you to with identifying all the relevant details from your client.

Task 2

Create cash flow summary for Stephen

Task 3 

Create depreciation schedule for Stephen

Task 4

Create profit and loss statement for Stephen

Task 5

Create balance sheet for Stephen

Task 6

Answer the following questions:

• a. What rate of tax should Stephen be paying?
• b. What is his charge for the Medicare levy and surcharge?
• c. What superannuation should Stephen have received?
• d. What was Stephen's assessable income?
• e. What was Stephen's tax payable or refund amount?
• f. Did Stephen have any fringe benefits? If so what were they?
• g. How would you calculate the fringe benefits for reporting purposes?
• h. Is there any payroll tax due or paid?

Task 7

Create BAS for Stephen for 12 months.

Task 8

Write short summary of the financial position for Stephen and detail the steps you would take to lodge his BAS for 12 months.

Submit your completed tasks and documentation as required with your completed assessment.