Reference no: EM133187243

Question - Mac D Limited commenced trading on 1 January 20X1. The profit before tax for the year ended 31 December 20X1 has been correctly calculated as C250 000, after taking the following information into account:

Unearned sales income of C24 000 received in advance in respect of 20X2 (taxable in the current year).

Interest income receivable of C7 000 (taxable in the current year).

Telephone payment of C5 000 is owing for 20X1 but has not yet been paid (deductible in the current year).

The rent for the first month in 20X2 of C10 000 has been paid in advance (deductible in the current year).

Dividend income of C12 000 was earned during 20X1 (not taxable).

A donation of C8 000 was paid during 20X1 (not deductible).

Depreciation of C40 000 was expensed during the year. The wear and tear amounts to C25 000. This was the only movement in property, plant and equipment during the year. There are no components of other comprehensive income. The applicable tax rate is 30% on taxable profits. There are no other differences between accounting profit and taxable profit other than those apparent from the above information.

Required - Provide the journal entries related to current tax and deferred tax for the year ended 31 December 20X1.