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MR Ltd commences operations on 1 July 2005 and presents its first income statement and first balance sheet on 30 June 2006. The statements are prepared before considering taxation. The follow- ing information is available: Income statement for the year ended 30 June 2006 Gross profit 730 000 Administration expenses Salaries Long service leave Warranty expenses 80 000 200 000 20 000 30 000 80 000 20 000 430 000 Accounting profit before tax 300 000 Assets and liabilities as disclosed in the balance sheet as at 30 June 2006 20 000 100 000 100 000 10 000 Accounts receivable Prepaid insurance 400 000 80 000 320 000 Total assets 550 000 Accounts payable Provision for warranty expenses Loan payable Provision for long-service leave expenses Total liabilities Net assets 80 000 20 000 200 000 20 000 320 000 230 000 Other information All administration and salaries expenses incurred have been paid as at year end. None of the long-service leave expense has actually been paid. It is not deductible until it is actually paid. Warranty expenses were accrued and, at year end, actual payments of $10 000 had been made (leaving an accrued balance of S20 000). Deductions are available only when the amounts are paid and not as they are a Insurance was initially prepaid to the amount of $30 000. At year end, the unused component of the prepaid insurance amounted to $10 000. 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. ccrued. The plant is depreciated over five years for accounting purposes, but over four years for taxation purposes. The tax rate is 30 per cent. Required Provide the journal entries to account for tax in accordance with AASB 112