ABC Ltd commenced operations on 1 July 2019. One year later, on 30 June 2020, the entity prepared its first statement of comprehensive income and its first statement of financial position. The statements were prepared before considering taxation. The following information is available:

Statement of profit or loss and other comprehensive income for the year ended 30 June 2020	($)		($)
Gross profit			500,000
Expenses
Wages expense	200,000
Annual leave expense	50,000
Doubtful debt expense	20,000
Rent expense	50,000
Depreciation expense furniture and fittings	30,000		350,000
Accounting profit before tax			150,000
Other comprehensive income			Nil

Assets and liabilities as disclosed in the statement of financial position as at 30 June 2020	($)
Assets
Cash	150,000
Inventory	200,000
Accounts receivable (net)	180,000
Prepaid rent	50,000
Furniture and fittings	150,000
Less Accumulated depreciation furniture and fittings	(30,000)
Total assets	700,000
Liabilities
Accounts payable	100,000
Revenue received in advance	50,000
Loan payable	200,000
Provision for annual leave	50,000
Total liabilities	400,000
Net assets	300,000

Other information:

• The company tax rate is assumed to be 30%.
• All salaries have been paid as at year end and are deductible for tax purposes.
• None of the annual leave has been paid. It is not deductible for tax purposes until it is actually paid.
• Rent was paid in advance on 1 July 2019. Actual amounts paid are allowed as a tax deduction.
• Amounts received from sales, including those on credit terms, are taxed at the time the sale is made. No bad debts were written off.
• The revenue received in advance is included in the taxable income.
• The furniture and fittings are depreciated on a straight-line basis over 5 years for accounting purposes, but over 3 years for taxation purposes. The furniture and fittings are not expected to have any residual value.

Required:

(a) Prepare the journal entry to recognise current income tax on 30 June 2020. (4 marks)

(b) Prepare the deferred tax worksheet at 30 June 2020. Enter an appropriate number to each blank cell ((1) ~ (20)). (4 marks)

	Extract from accounting balance sheet ($)	Tax bases ($)	Deductible temporary differences ($)	Taxable temporary differences ($)
Assets
Cash	150,000	150,000
Inventory	200,000	200,000
Accounts receivable (net)	180,000	(1)	(2)	(3)
Prepaid rent	50,000	(4)	(5)	(6)
Furniture and fittings (net)	120,000	(7)	(8)	(9)
Total assets	700,000
Liabilities
Accounts payable	100,000	100,000
Revenue received in advance	50,000	(10)	(11)	(12)
Loan payable	200,000	(13)	(14)	(15)
Provision for annual leave	50,000	(16)	(17)	(18)
Total liabilities	400,000
Net assets	300,000
Temporary differences at period end			(19)	(20)
less Prior period amounts			0	0
Movement for the period			(19)	(20)

(c) Prepare the journal entries to recognise deferred tax accounts at 30 June 2020. ABC Ltd offsets deferred tax assets and deferred tax liabilities. (2 marks)