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The Statement of Financial Position of Melon Ltd as at 30 June 2020 showed the following assets and liabilities: 2020 2019 Assets $ $ Cash
The Statement of Financial Position of Melon Ltd as at 30 June 2020 showed the following assets and liabilities: 2020 2019 Assets $ $ Cash 15 000 12 500 Accounts receivables 35,000 42,000 (4,200) 11,500 Allowance for doubtful debts Inventory Prepaid Insurance Equipment Accumulated Depreciation - Equipment Deferred Tax Asset (3,500) 8,500 7,500 100,000 4,200 100,000 (52,000) (45,000) 2,400 Liabilities Accounts Payable 29,000 26,000 Provision for long service leave 7,500 7,000 Interest Payable 7,000 4,500 Deferred Tax Liability ? 3,200 Additional information: 1. Accumulated depreciation of plant for tax purposes was $78,000 as at 30 June 2020. 2. The tax rate is 30%. Required: Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2020. (6 marks)
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