Jon operates a retail food outlet. His business meets the criteria for a small business entity and has supplied the following data;

Rental payments (including 3 months $60,000 paid in advance as at 30 June 2020)                          300,000

Insurance premium payments (including 6 months $24,000 paid in advance as at 30 June 2020)     72,000

Equipment lease payments (including 24 months $240,000 paid in advance at 30 June 2020)        360,000

Required:

Calculate Jon's deductions from the transactions for the 2019/20 tax year on the basis that he elects to apply the small business concession relating to pre-payments.

Provide the balance day adjustment journal entries for Jon, to account for the prepaid equipment lease payments at 30 June (under accrual accounting).