Practical Question 2 Accounting for Income Tax Deferred Tax Worksheet - 7 Marks

The Statement of Financial Position of Platinum as at 30 June 2022 showed the following assets and liabilities.

	2022	2021
Assets	$	$
Cash	7,000	5,500
Accounts receivables	55,000	42,000
Allowance for doubtful debts	(6,500)	(3,000)
Inventory	17,000	15,500
Interest Receivable	3,000	6,000
Plant	70,000	70,000
Accumulated Depreciation - Plant	(36,000)	(31,000)
Buildings	40,000	40,000
Accumulated Depreciation Buildings	(16,000)	(15,000)
Deferred Tax Asset	?	1,200
Liabilities
Accounts Payable	29,000	26,000
Unearned Rent Revenue	12,000	5,000
Provision for long service leave	7,000	4,500
Provision for annual leave	7,500	7,000
Deferred Tax Liability	?	2,500

Additional information:

Accumulated depreciation of plant for tax purposes was $42,000 as at 30 June 2022.

Accumulated depreciation of buildings for tax purposes was $26,000 as at 30 June 2022

The tax rate is 30%.

Required:

Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2022. (7 marks)