Kilcoy Ltd has determined its accounting prot before tax for the year ended 30 June 2020 to be$256 700. Included in this prot are the items of revenue and expense shown below

The accounting prot for Kilcoy Ltd for the year ended 30 June 2020 also included a gain on sale of buildings of $5000

The companys draft statement of nancial position at 30 June 2020 showed the following assets and liabilities

Royalty revenue (non-taxable) Entertainment expense Depreciation expense buildings Depreciation expense plant Doubtful debts expense Annual leave expense Insurance expense Development expense $ 8000 1 700 7600 22 500 4100 46 000 4200 15 000 $ 2500 $ 21500 (4 100) Assets Cash Accounts receivable Less: Allowance for doubtful debts Inventories Prepaid insurance Land Buildings Less: Accumulated depreciation Plant Less: Accumulated depreciation Deferred tax asset (opening balance) 17 400 31 600 4500 75 000 110 500 170 000 (59500) 150 000 (67 500) 82 500 9600 333600 Liabilities Accounts payable Provision for annual leave Deferred tax liability (opening balance) Loan 25 000 10 000 6 000 140 000 $ 181 000 Additional information Quarterly income tax instalments paid during the year were as follows. . 28 October 2019 28 January 2020 28 April 2020 $18 000 17500 18 000 The final balance of tax payable was due on 28 July 2020. The tax depreciation rate for plant (which cost $150 000, 3 years before) is 20%. Depreciation on buildings is not deductible for taxation purposes. The gain on sale of buildings of $5000 (see above) was recognised on buildings sold on 1 January 2020 that had cost $ 100 000 when acquired on 1 January 2014. The company depreciates buildings for accounting purposes at 5% p.a., straight-line. Any gain (loss) on sale of buildings is not taxable (not deductible). During the year, the following cash amounts were paid. Annual leave Insurance $52 000 3700 Bad debts of $3500 were written off against the allowance for doubtful debts during the year. The $15000 spent (and expensed) on development during the year is not deductible for tax purposes until 30 June 2021. Kilcoy Ltd has tax losses amounting to $12 500 carried forward from prior years. The company tax rate is 30%. Required 1. Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2020. 2. Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts. Royalty revenue (non-taxable) Entertainment expense Depreciation expense buildings Depreciation expense plant Doubtful debts expense Annual leave expense Insurance expense Development expense $ 8000 1 700 7600 22 500 4100 46 000 4200 15 000 $ 2500 $ 21500 (4 100) Assets Cash Accounts receivable Less: Allowance for doubtful debts Inventories Prepaid insurance Land Buildings Less: Accumulated depreciation Plant Less: Accumulated depreciation Deferred tax asset (opening balance) 17 400 31 600 4500 75 000 110 500 170 000 (59500) 150 000 (67 500) 82 500 9600 333600 Liabilities Accounts payable Provision for annual leave Deferred tax liability (opening balance) Loan 25 000 10 000 6 000 140 000 $ 181 000 Additional information Quarterly income tax instalments paid during the year were as follows. . 28 October 2019 28 January 2020 28 April 2020 $18 000 17500 18 000 The final balance of tax payable was due on 28 July 2020. The tax depreciation rate for plant (which cost $150 000, 3 years before) is 20%. Depreciation on buildings is not deductible for taxation purposes. The gain on sale of buildings of $5000 (see above) was recognised on buildings sold on 1 January 2020 that had cost $ 100 000 when acquired on 1 January 2014. The company depreciates buildings for accounting purposes at 5% p.a., straight-line. Any gain (loss) on sale of buildings is not taxable (not deductible). During the year, the following cash amounts were paid. Annual leave Insurance $52 000 3700 Bad debts of $3500 were written off against the allowance for doubtful debts during the year. The $15000 spent (and expensed) on development during the year is not deductible for tax purposes until 30 June 2021. Kilcoy Ltd has tax losses amounting to $12 500 carried forward from prior years. The company tax rate is 30%. Required 1. Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2020. 2. Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts