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The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities. 2021 Assets $ Cash 3,000 Accounts

The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities.

2021

Assets

$

Cash

3,000

Accounts receivables

85,000

Allowance for doubtful debts

(4,000)

Inventory

9,500

Prepaid insurance

3,600

Plant

60,000

Accumulated Depreciation - Plant

(15,000)

Deferred Tax Asset (at 30/06/2020: $1,270)

?

Liabilities

Accounts Payable

75,000

Provision for Long service leave

2,000

Revenue received in advance

3,000

Deferred Tax Liability (at 30/06/2020: $800)

?

Additional information

a. Accumulated depreciation of plant for tax purposes was $20,000 as at 30 June 2021.

b. The tax rate is 30%.

Required

Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2021.

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