Required:

1. Prepare the journal entries to calculate and the movements in deferred tax accounts for the year ended 30 June 2023.

2. Explain about interest revenue

12.22 Current and deferred tax with prior year losses LO4,5 The accounting profit before tax of Charleville Ltd for the year ended 30 June 2023 was $175 900. It included the following revenue and expense items. Government grant (non-taxable) Interest revenue Long service leave expense Doubtful debts expense Depreciation expense plant (15% p.a., straight-line) Rent expense Entertainment expense (non-deductible) $ 5 800 14 000 7 000 4 200 33 000 22 800 3 900 The draft statement of financial position as at 30 June 2023 included the following assets and liabilities. 2023 2022 $ 7500 76 800 (3 200) 58 300 Cash Accounts receivable Allowance for doubtful debts Inventories Interest receivable Prepaid rent Plant Accumulated depreciation - plant Deferred tax asset Accounts payable Provision for long service leave Deferred tax liability $ 9 000 83 000 (5000) 67 100 2 000 2 800 220 000 (99 000) ? 71 200 64 000 ? 2 400 220 000 (66 000) 32 480 73 600 61 000 950 Additional information The tax depreciation rate for plant is 10% p.a., straight-line. The tax rate is 30%. The company has $15 000 in tax losses carried forward from the previous year. A deferred tax asset was recognised for these losses. Taxation legislation allows such losses to be offset against future taxable profit