The following are extracts from the draft financial accounts of Shopko Sdn Bhd for the year ended 31 March 2020. An extract of the financial position of Shopko Bhd at 31 March 2020 is as follows: \begin{tabular}{|l|r|r|} \hline Liabilities \& Equity & & \\ \hline Trade Creditors & 142,000 & 10,000 \\ \hline Accruals & 14,000 & 6,000 \\ \hline Rent Payable & & 10,000 \\ \hline Dividend proposed & 15,000 & \\ \hline Employee benefits payable & 8,000 & \\ \hline Deferred Tax Liability & 2?? & 7,000 \\ \hline Share Capital & 500,000 & 500,000 \\ \hline Retained Earnings & (15,000) & 40,000 \\ \hline & 664,000 & 573,000 \\ \hline \end{tabular} Additional information: i) Accruals for the current financial year are in respect of audit fees ii) The depreciation for tax purposes for the current year and tax base of the office equipment and motor vehicles at 31 March 2020were as follows: The company's leasehold land does not qualify for capital allowance. iii) Donation expenses are not allowable as a tax deduction. iv) Impairment expense is not allowed as a tax deduction v) The company tax rate is 24%. vi) Shopko Bhd accounts for deferred tax using the full provision (Liability method). Required: a) Calculate the income tax liability for Shopko Bhd as at 31 March 2020 and prepare the journal entry to record the income tax payable. (12 marks) b) Prepare the deferred tax worksheet at 31 March 2020 to determine the deferred tax entries for the year. (15 marks) c) Record the journal entry for Deferred Tax Asset and Deferred Tax Liability for the current financial year. (3 marks) The following are extracts from the draft financial accounts of Shopko Sdn Bhd for the year ended 31 March 2020. An extract of the financial position of Shopko Bhd at 31 March 2020 is as follows: \begin{tabular}{|l|r|r|} \hline Liabilities \& Equity & & \\ \hline Trade Creditors & 142,000 & 10,000 \\ \hline Accruals & 14,000 & 6,000 \\ \hline Rent Payable & & 10,000 \\ \hline Dividend proposed & 15,000 & \\ \hline Employee benefits payable & 8,000 & \\ \hline Deferred Tax Liability & 2?? & 7,000 \\ \hline Share Capital & 500,000 & 500,000 \\ \hline Retained Earnings & (15,000) & 40,000 \\ \hline & 664,000 & 573,000 \\ \hline \end{tabular} Additional information: i) Accruals for the current financial year are in respect of audit fees ii) The depreciation for tax purposes for the current year and tax base of the office equipment and motor vehicles at 31 March 2020were as follows: The company's leasehold land does not qualify for capital allowance. iii) Donation expenses are not allowable as a tax deduction. iv) Impairment expense is not allowed as a tax deduction v) The company tax rate is 24%. vi) Shopko Bhd accounts for deferred tax using the full provision (Liability method). Required: a) Calculate the income tax liability for Shopko Bhd as at 31 March 2020 and prepare the journal entry to record the income tax payable. (12 marks) b) Prepare the deferred tax worksheet at 31 March 2020 to determine the deferred tax entries for the year. (15 marks) c) Record the journal entry for Deferred Tax Asset and Deferred Tax Liability for the current financial year
