Harris Pty Ltd recorded an accounting profit before tax of $880,000 for the year ended 30 June 2020.

Included in the accounting profit were the following items of revenue and expense.

• Entertainment expenses (non-deductible) for $30,000
• Depreciation expense Motor vehicle (10% p.a., straight-line) for $10,000
• Rent revenue for $85,000
• Penalties and fines for $5,000
• Goodwill impairment for $47,000
• Long service leave expense for $12,000
• Annual leave expense for $18,000

For tax purposes the following applied

• Depreciation expense Motor vehicle (20%)
• Rent received for $50,000
• Long service leave paid for $8,000
• Annual leave paid $9,500
• Income tax rate (30%)

Required

A. Construct a tax worksheet to calculate the current tax liability for the year ended 30 June 2020. (6 Marks)

B. Prepare the adjusting journal entry. (1.5 Marks)