Exercise13.12 Calculationofcurrentanddeferredtax,andadjustment Indeko Ltd commences operations on 1 July 2023. One year later, on 30 June 2024, the entity prepares its first statement of comprehensive income and its first statement of financial position. The statements are prepared before considering taxation. The following information is available. Gross profit Wages expense Annual leave expense Bad debts expense Rent expense Depreciation expense furniture and fittings Accounting profit before tax Assets Cash Inventories Accounts receivable (net) Prepaid rent Furniture and fittings Accumulated depreciation furniture and fittings Liabilities Accounts payable Revenue received in advance Loan payable Provision for annual leave Additional information $ 300 000 (90 000) (20 000) (12 000) (23 000) (15 000) 140 000 26 000 120 000 100 000 20 000 105 000) (21 000 350 000 60 000 20 000 100 000 20 000 200 000 Statement of comprehensive income for the year ended 30 June 2024 Assets and liabilities as disclosed in the statement of financial position as at 30 June 2024 $ The income 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 expense has actually been paid. It is not deductible for tax purposes until it is actually paid. Rent was paid in advance on 1 July 2023. Actual amounts paid are allowed as a tax deduction. Amounts received from sales are taxed at the time the sale is made. Similarly, cost of sales is allowed as a tax 97 22420 Accounting Standards & Regulations, 2023 deduction when sales are made. No bad debts were written off. The revenue received in advance is included in the taxable income. The furniture and fittings is depreciated on a straight-line basis over 5 years for accounting purposes, but over 3 years for taxation purposes. The furniture and fittings is not expected to have any residual value. Required 1. Prepare the current tax worksheet for Indeko Ltd and the journal entry to recognise current tax at 30 June 2024. 2. Prepare the deferred tax worksheet for Indeko Ltd and journal entries to adjust deferred tax accounts at 30 June 2024. (LO4 and LO5)