Question:

Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2023.

Current and deferred tax Note: Entertainment expenses are not deductible for tax purposes. Loftus et al (2020) Table 12.1 for confirmation. Konpayi Ltd has determined its accounting profit before tax for the year ended 30 June 2023 to be $256,700. Included in this profit are the items of revenue and expense shown below. 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 7 600 22 500 4100 46 000 4 200 15000 The accounting profit for Konpayi Ltd for the year ended 30 June 2023 also included a gain on sale of buildings of $5,000. The company's draft statement of financial position at 30 June 2023 showed the following assets and liabilities. Accounts receivable Less: Allowance for doubtful debts Inventories Prepaid insurance Buildings Less: Accumulated depreciation Accumulated depreciation Deferred tax asset (opening balance) Liabilities Accounts payable Provision for annual leave Deferred tax liability (opening balance) $ 21500 (4100) 170000 (59 500) 150000 (67 500) $ 2500 17400 31 600 4500 75 ooo 110500 82500 9600 333600 25000 10000 6 ooo 140000 $181 000