Entity A is a listed company in Hong Kong. It is a trading business. It commences operations on 1 October 2022. One year later, on 30 September 2023, the entity prepared its first Statement of Profit or Loss and its first Statement of Financial Position. These statements were prepared before considering taxation. The following information is available: Statement of Profit or Loss for 30-Sep-23 Gross profit Less: $ 1,750,000 600,000 Wages expense Long service leave expense Bad debts expense Rent expense Depreciation expense - Machinery Profit before tax 150,000 60,000 150,000 100,000 690,000 Statement of Financial Position as at 30-Sep-23 (Only Assets and Liabilities) Asset Machinery Less: Accumulated depreciation - Machinery Cash Inventories Trade receivable (net) Prepaid rent Liabilities Trade payable $ 500,000 100,000 450,000 600,000 540,000 150,000 300,000 Revenue received in advance 150,000 Loan payable 600,000 Provision for long service leave 150,000 Additional information The profit tax rate is assumed to be 25%. All salaries have been paid at the year-end and are deductible for tax purposes. The long-service leave expense has not actually been paid. It is not deductible for tax purposes until it is actually paid. Sales include both cash and credit sales. The amounts received from sales are taxed when the sale is made. Bad debts are not tax-deductible this year but they will be deducted in the future. The rent was paid in advance on 30 September 2023. Actual amounts paid are allowed as a tax deduction. The revenue received in advance is included in the taxable profit. The machine was purchased on 1 October 2022. It is depreciated on a straight-line basis over 5 years for accounting purposes, but over 2 years for taxation purposes. The machinery is not expected to have any residual value. The end of the reporting period is 30 September 2023. REQUIRED: Prepare journal entries to recognise the current tax and deferred tax on 30 September 2023. ACCOUNTS FOR INPUT: | Current tax liability | Income tax expense | Deferred tax asset | Deferred tax liability | | Over-provision of tax | Under-provision of tax | Bank | Retained earnings | | Revaluation reserve | No entry | ANSWER: Journal Entries: Date 30-Sep-23 30-Sep-23 30-Sep-23 Account Name Debit ($) Credit ($) Hints for Sequence