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The following information was extracted from the records of Sol Ltd for the year ended 30 June 2024. Assets SOL LTD Statement of financial
The following information was extracted from the records of Sol Ltd for the year ended 30 June 2024. Assets SOL LTD Statement of financial position (extract) Accounts receivable as at 30 June 2024 Allowance for doubtful debts Motor vehicles $ 50 000 (4 000) 200 000 Accumulated depreciation - motor vehicles (40 000) Liabilities Interest payable Additional information 2 000 The accumulated tax depreciation for motor vehicles at 30 June 2024 was $150 000. At year end 30 June 2023, the deferred tax asset account had a balance of $1000 and the deferred tax liability account had a balance of $1 500. The tax rate is 30%. Required Use a deferred tax worksheet to calculate the balance for the deferred tax asset and the deferred tax liability for the year-end 30 June 2024. Prepare the necessary journal entry to adjust the deferred tax accounts.
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