Aquarius Ltd’s draft financial statements for the year ended 31 December 20X9 show 
a profit before tax of R170,000. At 31 December 20X9 there are cumulative taxable 
temporary differences of R50,000, i.e. the carrying value of the net assets is higher 
than the tax base by this amount. Current tax for the year at 30% has been estimated 
at R33,000.
For the year ended 31 December 20X8 the financial statements had a profit before tax 
of R145,000. At 31 December 20X8 the cumulative taxable temporary differences 
were R40,000 and current tax for the year at 30% was R30,000.
Required:
For the years ended 31 December 20X8 and 31 December 20X9:
(a) Prepare the journal entry to record deferred tax for the years ended 31 
December 20X8 and 20X9 (5)
(b) Prepare extracts from the statement of profit or loss for the year ended 31 
December 20X9 and the statement of financial position at 31 December 20X9, 
both with comparatives, showing how the current and deferred tax would be 
reflected. 

Following is a list of financial statement items and amounts forTim Burr’s Tree Service as of 12/31/X3, the end of its first yearin operation. Accounts Receivable $ 42,000 Accounts Payable 32,000Cash 10,200 Common Stock 22,000 Notes Payable 10,400 Equipment51,000 Service Revenue 110,000 Fuel Expense 10,200 Rent Expense11,900 Advertising Expense 5,200 Salaries and Wages Expense 22,000Retained Earnings ? Dividends 21,900

1. Prepare the Income Statement for the yearended December 31, 20X3.

2. Prepare the statement of retained earningsfor the year ended December 31, 20X3.

3. Prepare the balance sheet for the year endedDecember 31, 20X3.

Ameen Company had the following balance sheet as of December 31,2014.

Ameen Company
Statement of Financial Position
December 31, 2014
(amounts are in millions)

During 2015, Ameen had cash sales of $47 million
Ameen Company had previously purchased a building for $36 million.Ameen uses straight-line depreciation for financial statementreporting and MACRS for income tax reporting. At December 31, 2014,the carrying value of the building was $30 million and its taxbasis was $20 million. At December 31, 2015, the carrying value ofthe building was $28 million and its tax basis was $13 million. Thetax rate is 40%. There were no other temporary differences and nopermanent differences.

Required:
1. Provide the following journal entries

a. Recognize the sales

b. Recognize the depreciation expense

c. Recognize the tax accrual

d. Provide the supporting document to justify the tax accrual:

e. Provide the statement of financial position for December 31,2015.