The statement of comprehensive income of Jonathon Ltd for the year ended 30 June 2020 shows the profit before tax amounted to $240,000, including revenue and expense items.
$
| Entertainment costs (no-deductible) | 7 200 |
| Annual leave expense | 12 000 |
| Depreciation expense – Equipment | 20 000 |
| Depreciation expense – buildings (non-deductible) | 3 200 |
| Rent revenue | 12 000 |
| Bad debt expense | 24 000 |
| Long service leave expense | 6 000 |
Assets and liabilities as disclosed in the Statement of Financial Position as 30 June 2020.
| 2020 | 2019 | |
| Assets | ||
| Cash | 32 000 | 34 000 |
| Inventories | 68 000 | 62 000 |
| Accounts receivables | 200 000 | 192 000 |
| Allowance for doubtful debts | (22, 000) | 16 000 |
| Office supplies | 10 000 | 8 800 |
| Equipment | 200 000 | 200 000 |
| Accumulated depreciation – equipment | (104 000) | (84 000) |
| Buildings | 120 000 | 120 000 |
| Accumulated depreciation – buildings | (59 200) | 56 000 |
| Goodwill (net) | 28 000 | 28 000 |
| Deferred tax asset | ? | 16 200 |
| Liabilities | ||
| Accounts payable | 116 000 | 104 000 |
| Provision for long service leave | 24 000 | 18 000 |
| Provision for annual leave | 16 000 | 12 000 |
| Rent received in advance | 10 000 | 8 000 |
| Deferred tax liability | ? | 12 600 |
Additional information
- Accumulated depreciation of equipment for tax purposes was $126 000 at 30 June 2019, and depreciation for tax purposes for the year ended 30 June 2020 amounted to $30 000.
- The tax rate is 30%.
Required:
- Determine rent received, bad debts written off, annual leave paid, and long service leave paid.
- Prepare a current tax worksheet (using excel spreadsheet).
- Prepare the applicable journal the journal entry to recognise the company’s current tax liability as at 30 June 2020.
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