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The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Apple Ltd for the year ended 30

The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Apple Ltd for the year ended 30 June 2020, amounted to $65,000 including the following revenue and expense items:

30 June 2020

$

Rent Expense

12,000

Bad debts expense

500

Depreciation expense - equipment

10,000

Annual Leave Expense

1,500

Interest Expense

4,500

Fines and Penalties (non-deductible)

2,500

Entertainment Expense (non-deductible)

700

Interest on Govt Bonds (exempt from tax)

2,500

Additional information:

  1. The deduction for depreciation for tax purposes is double the accounting depreciation.
  2. No bad debts were written off during the year.
  3. Rent of $15,000 was prepaid at the beginning of the year and is deducted for tax purposes when paid.
  4. Annual leave paid during the year was $500.
  5. Interest payments of $4,000 were made in cash.
  6. The tax rate is 30%.

Required

Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2020.

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