The following information was extracted from the records of Lovett Ltd. for the year ended 30 June 2024. Lovett LTD as 30 June 2024 Accounts receivable 120,000 Accumulated depreciation motor vehicles (51,800) Allowance for doubtful debts (8,000) Bad debts expense 11,000 Deferred tax asset 5,783 Deferred tax liability 9,140 Insurance Expense 13,000 Interest payable 9,000 Motor vehicles 259,000 Prepaid insurance 17,600 Rent receivable 8,400 Rent revenue 3,000 Additional information Estimated useful life for tax purposes 20 years Estimated useful life for accounting 15 years Rent received 2,000 Opening balance for prepaid insurance 14,000 Opening balance for the allowance for doubtful debts 12,000 Interest expenses 3,000 Tax rate 30% Profit before tax 141,100 Required: a. Prepare the current tax worksheet and related journal entries. b. Prepare the deferred tax worksheet and related journal entries..

1. The following information was extracted from the records of Lovett Ltd. for the year ended 30
June 2024. Lovett LTD as 30 June 2024 Accounts receivable 120,000 Accumulated depreciation
motor vehicles (51,800) Allowance for doubtful debts (8,000) Bad debts expense 11,000
Deferred tax asset 5,783 Deferred tax liability 9,140 Insurance Expense 13,000 Interest payable
9,000 Motor vehicles 259,000 Prepaid insurance 17,600 Rent receivable 8,400 Rent revenue
3,000 Additional information Estimated useful life for tax purposes 20 years Estimated useful
life for accounting 15 years Rent received 2,000 Opening balance for prepaid insurance 14,000
Opening balance for the allowance for doubtful debts 12,000 Interest expenses 3,000 Tax rate
30% Profit before tax 141,100 Required:
a. Prepare the current tax worksheet and related journal entries.
b. Prepare the deferred tax worksheet and related journal entries.