Eehan Pty Ltd is a membership organisation and holds fund in trust for operating a local charity in Tasmania. Zeehan Pty Ltd has prepared its adjusted trial balance for the year ended 30 June 2031. It has yet to determine its income tax expense for the year and the tax assets and liabilities that arise from the transactions and events of the year. The following tables provide relevant information from the adjusted trial balance:

TABLE 1

2031	2030
Cash	61200	81600
Account receivables	564400	522240
Allowance for doubtful debt	(34000)	(21760)
Supplies	456280	396440
Dividend receivables	23800	10200
Prepaid rent	16320	19040
Machineries	2040000	2040000
Accumulated depreciation- machinery	(612000)	(408000)
Deferred tax assets	93,636
Account payable	490960	508640
Membership fee in advance	19040	25160
Provision for sick leave	435200	238000
Deferred tax liability	192372

Table 2

2031
Accounting profit	1169600
Export incentive grant income	39440
Membership fee revenue	333200
Dividend income	142800
Sick leave expenses	197200
Bad and doubtful debt expenses	28560
Depreciation expenses- machinery	204000
Rent expenses	155040
Entertainment expenses	26520

Additional information:

• Zeehan Pty Ltd recouped a tax loss of $27,200 in this financial year

• A deferred tax asset was previously recognised in relation to this tax loss

• The entertainment expenses paid by Zeehan during the year are not deductible

• Machinery assets are depreciated using straight-line at 10% p.a. with no residual

• Machinery – tax depreciation rate is 25% p.a., straight-line with no residual

• The export incentive grant income relates to its international sales. The grant received from the Commonwealth Government is not taxable.

• The tax rate is 30%

Required:

1. Analyse the data and information presented above and show the supporting calculations required for values included in the two tax worksheets.

2. Prepare the current tax worksheet to calculate the current tax liability for the year ended 30 June 2031.

3. Prepare the deferred tax worksheet to calculate the movements in deferred tax accounts for the year ended 30 June 2031.

4. Provide the journal entries that arise from these tax worksheets.

5. Briefly explain how the items that arise from these journal entries will be reported in the financial statements for the year ended 30 June 2031 (no word limit).