The profit before tax, as reported in the statement of profit and loss for Adeline Ltd for the year ended 30 June 2021, amounted to $100000, including the following revenue and expense items.

Sales revenue $650000

interest revenue $50000

Government grant (non taxable) $50000

Cost of goods sold $400000

Bad debts expense $10000

Depreciation expense- equipment $10000

Depreciation expense- plant $20000

Research and development expense $80000

Wages expense $120000

Long service leave expense $20000

The statement of profit and loss for Adeline Ltd for the year ended 30 June 2021 all included a gain on sale of equipment of $10000. According to AASB 116/IAS 16, this gain is not classified as revenue, but it is nevertheless part of the accounting profit before tax for the year. The draft statements of financial position of Adeline Ltd at 30 June 2020 and 30 June 2021 showed the following assets and liabilities.

Assets 2020 2021

Cash $ 30000 $ 30000

Inventories 100000 150000

Accounts receivable 50000 70000

Allowance for doubtful debts (5000) (10000)

Interest receivable 25000 20000

Equipment 30000 _

Accumulated depreciation- equipment (15000) _

Plant 200000 20000

Accumulated depreciation- Plant (40000) (60000)

Goodwill 15000 15000

Deferred tax asset 33000 ?

Liabilities

Accounts payable 60000 40000

Wages payable 50000 80000

Revenue received advance _ 20000

Loan payable 200000 100000

Provision for long service leave 40000 30000

Deferred tax liability 24000 ?

Additional information

- In the year ended 30 June 2020, Adeline Ltd had a tax loss of $65000 that it carried over in the deferred tax asset. In June 2021, the company received an amended assessment for the year ended 30 June 2020 from the ATO, indicating that an amount of $5000 claimed as a deduction has been disallowed. Adeline Ltd has not yet adjusted its accounts to reflect the amendment.

- Amounts received from sales, including those on credit terms, are taxed at the time the sale is made. All other general taxation rules apply.

- The movement in the equipment account is caused by the sale of the equipment on 1 March 2021 for which a gain on sale of $10000 was recognised as part of the profit before tax (see Above). Adeline Ltd had purchased the equipment on 1 July 2019 (with an estimated useful life of 2 years and no residual value) and for taxation purposes it claimed its full cost as a deduction at 30 June 2020.

- The plant is depreciated on a straight line basis over 10 years for accounting purposes, but over 5 years for taxation purposes. The plant is not expected to have any residual value.

- All research and development expenses were paid in cash during the year ended 30 June 2021.

- The company tax rate is assumed to be 30% for the year ended 30 June 2020 and 28% for the year ended 30 June 2021. The balances of the deferred tax accounts at 30 June 2020 are still reflecting the 30% tax rate.

Required

1- Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2021.

2- Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts.