ONLY QUESTION 2 PLEASE

Calculation of current and deferred tax, and adjustment entry LO4, 5 Victory Ltd commences operations on 1 July 2020. One year later, on 30 June 2021, 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 Statement of comprehensive income for the year ended 30 June 2021 Gross profit Wages expense Long service leave expense Bad debts expense Rent expense Depreciation expense machinery Accounting profit before tax $500 000 (200 000) (50 000) (20000) (50 000) (30000) 150 000 Assets and liabilities as disclosed in the statement of financial position as at 30o June 2021 Assets Cash Inventories Accounts receivables (net) Prepaid rent Machinery Accumulated depreciation- machinery $150 000 200000 180 000 50 000 150 000) (30 000 700000 Liabilities Accounts payable Revenue received in advance Loan payable Provision for long service leave 100 000 50 000 200 000 50 000 400 000 Additional information The company tax rate is assumed to be 30% . All salaries have been paid as at year end and are deductible for tax purpose:s . None of the long service 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 2020. Actual amounts paid are allowed as a tax deduction . Amounts received from sales, including those on credit terms, are taxed at the time the sale is made. No bad debts were written off. The revenue received in advance is included in the taxable income . The machinery is depreciated on a straight-line basis over 5 years for accounting purposes, but over 3 years for taxation purposes. The machinery is not expected to have any residual value Required Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2021 2. Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts. 1