The following information was extracted from the records of Terra Ltd for the year ended 30 June 2024. TERRA LTD as at 30 lune 2024 Accounts receivable 70,000 Allowance for doubtful debts (15,000) Motor vehicles 280,000 Accumulated depreciation — motor vehicles (56,000) Prepaid insurance 34,000 Rent receivable 2,200 Bad debts expense 22,000 Interest payable 5,000 Rent revenue 7,800 Insurance Expense Ck 18,000 Deterred tax asset 2,100 Deferred tax liability 10,800 Additional information ✓ Estimated useful-life for tax purposes 10 years ✓ Estimated useful-life for accounting 15 years ✓ Rent received 5,000 ✓ Opening balance for prepaid insurance 29,500 ✓ Opening balance for the allowance for doubtful debts 7,000 ✓ Interest expenses 5,000 ✓ Tax rate 30% ✓ Profit before tax 245,300 Prepare the current tax worksheet and related journal entries. b. Prepare the deferred tax worksheet and related journal entries.
The following information was extracted from the records of Terra Ltd for the year ended 30 June 2024.
TERRA LTD as at 30 lune 2024
Additional information ✓ Estimated useful-life for tax purposes 10 years ✓ Estimated useful-life for accounting 15 years ✓ Rent received 5,000 ✓ Opening balance for prepaid insurance 29,500 ✓ Opening balance for the allowance for doubtful debts 7,000 ✓ Interest expenses 5,000 ✓ Tax rate 30% ✓ Profit before tax 245,300
- Prepare the current tax worksheet and related
journal entries. b. Prepare the deferred tax worksheet and related journal entries.
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