Entity A started a business in Hong Kong on 1 January 2021 and the end of the reporting period is 31 December. Entity A uses a straight-line depreciation method in accordance with HKAS 16. The depreciation expense is $200,000 per year. The tax depreciation allowance is $400,000 per year. The business entertainment expense can only be 40% deductible for tax purposes in 2021 and 2022. In 2021, the impairment loss for trade receivables of $48,000 is not tax-deductible but it will be deducted later when it is not collected. In 2022, it kept non-deductible in tax. On 31 December 2021, Entity A estimated that only 70% of the tax loss is expected to be utilized against future taxable profit. The tax rate for 2021 is 25%. Luckily, the business performance of Entity A on 31 December 2022 is better than before and Entity A also restores its confidence in performance in the coming future. The tax rate for 2022 is the same as in 2021. In order to support the business environment positively, on 28 February 2023, the profits tax rate was announced to be reduced from 25% to 18% by the government which is effective from 1 January 2023. The financial statement statements for 2021 and 2022 of Entity A are listed below: Entity A Statement of Profit and Loss for the Year 2021 Sales Cost of sales Gross profits Sundry expense Impairment on trade receivables Business entertainment expense Depreciation Loss for the year Entity A 2,250,000 1,520,000 730,000 289,000 48,000 365,000 200,000 (172,000) Statement of Profit and Loss for the Year 2022 Sales 6,500,000 Cost of sales 2,800,000 Gross profits 3,700,000 Sundry expense 485,000 Business entertainment expense 689,000 Depreciation 200,000 Profit before tax 2,326,000 Entity A pays the current tax to the local government on 31 March if necessary. REQUIRED: Prepare all journal entries of Entity A on 31 December 2021, 31 March 2022, 31 December 2022, 1 January 2023 and 31 March 2023 in accordance with HKAS 12 Income Taxes. ACCOUNTS FOR INPUT: | Current tax liability | Income tax expense | Deferred tax asset | Deferred tax liability | | Over-provision of tax | Under-provision of tax | Bank | Retained earnings | No entry | Date 31-Dec- 21 31-Dec- 21 31-Dec- 21 31-Mar- 22 31-Dec- 22 22 31-Dec- 22 Account Name Debit ($) Credit ($) Hints For Entries and Sequence Related to Principle 3. Related to PPE. Principles 1 and 2. Related to Principle 3. Asset. Judge Dr/Cr. 31-Dec- 22 22 Related to PPE. Principles 1 and 2. 2 31-Dec- 22 1-Jan-23 1-Jan-23 Expense. 31-Mar- 22 23 31-Mar- 23