The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Brass for the year ended 30 June 2020, amounted to $55,000 including the following revenue and expense items.

	June 2020
	$
Insurance Expense	6,000
Bad debts expense	6,000
Depreciation expense - equipment	7,000
Long Service Leave Expense	5,000
Interest Expense	4,500
Fines and Penalties (non-deductible)	2,500
Entertainment Expense (non-deductible)	4,500
Government grant (exempt from tax)	10,000

The Statement of Financial Position of the company as at 30 June 2020 showed the following assets and liabilities.

	2020	2019
Assets	$	$
Cash	15 000	12 500
Accounts receivables	42,000	35,000
Allowance for doubtful debts	(4,200)	(3,500)
Inventory	11,500	8,500
Prepaid Insurance	4,200	7,500
Equipment	100,000	100,000
Accumulated Depreciation - Equipment	(52,000)	(45,000)
Deferred Tax Asset	?	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

· Accumulated depreciation of equipment for tax purposes was $78,000 as at 30 June 2020, and depreciation for tax purposes for the year ended 30 June 2020 amounted to $10,500.

· The tax rate is 30%.

Required

1. Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2020. (9 marks)
2. Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2020.