4 Chart of accounts The chart of accounts for Skate n Surf contains the accounts and account numbers below.

100 Cash at bank 110 Accounts receivable 120 Inventory 130 Prepaid insurance 171 Shop equipment (cost) 172 Accumulated depreciation - shop equipment 200 Accounts payable 210 PAYG withholding payable 220 Superannuation payable 230 Bank loan 300 Capital 310 Drawings 320 Profit or loss summary 400 Sales revenue 410 Sales returns and allowances 420 Discount received 500 Cost of sales 600 Advertising expense 610 Depreciation expense 620 Discount allowed 630 Electricity expense 640 Insurance expense 650 Interest expense 660 Postage and stationery expense 670 Superannuation expense 680 Telephone expense 690 Wages expense

Transactions June 1 The owner opened a bank account for the business with a deposit of $36,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $36,000 and computer equipment for the shop from Computer Wizards for $9,000. These were paid for with a loan of $41,000 from the bank and cheque for $4,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $4,080 for a 1-year insurance policy covering fire, theft, and public liability. 2 Paid $1,150 to Local Newspapers for advertising for the shop for the month. 7 Purchased inventory (skateboards and protective gear) from Excitement Plus for $26,000 on terms on net 30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,100 (cost of sales $3,000). This customer was given terms of 5/10, n/30. 8 Cash sale of a skateboard and protective gear for $580 (cost of sales $250). 11 Cash purchase of postage stamps and stationery from Australia Post for $180. 12 Credit sale to Surfing World of various inventory items for $7,900 (cost of sales $4,500). Terms net 30. 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $100. 13 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. 14 Paid Surf Imports the amount owing to them less the prompt payment discount. 17 Credit sale to Academy Diving School of 15 wetsuits at a discounted price of $250 each on terms of net 15. Cost of sales $4,000. 23 Paid Excitement Plus $4,000 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $250 each that was not the size they required. The cost of the wetsuit to us was $200 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for $9,200 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $8,500 (cost of sales $4,100). Terms 5/10, n/30. 27 Received and banked a cheque from Academy Diving School for the amount owing by them. 30 A repayment of $1,000 was made on the bank loan. 30 The owner cashed a cheque for $780 to pay wages to Scott Walker the sales assistant of $810 less PAYG Withholding of $30.

The June transactions above have been journalised and posted.

Skate n Surf Trial balance as at 30 June 20XX Account no. Account Debit Credit 100 Cash at bank 13,535 110 Accounts receivable 16,400 120 Inventory 37,450 130 Prepaid insurance 4,080 171 Shop equipment (cost) 45,000 200 Accounts payable 31,100 210 PAYG withholding payable 30 230 Bank loan 40,000 300 Capital 36,000 400 Sales revenue 25,830 410 Sales returns and allowances 250 420 Discount received 1,800 500 Cost of sales 15,650 600 Advertising expense 1,150 620 Discount allowed 255 660 Postage and stationery expense 180 690 Wages expense 810 $134,760 $134,760

Journalise the following end-of-month adjustments.

(Note: Enter debit entries first, followed by credit entries in the general journal. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Leave blank any answer fields that do not require an answer. Round answer to the nearest

whole dollar.)

a. Depreciation on shop equipment for the month is 15% p.a. prime cost (straight line). b. One-twelfth of the insurance expired. c. Superannuation payable for the month is 10.0% of the gross wages paid. d. Interest charged on the bank loan for the month was $154 .

Journalise the following end-of-month adjustments. (Note: Enter debit entries first, followed by credit entries in the general journal. Credit account titles are automatically indented when the amount is entered. Do not inde do not require an answer. Round answer to the nearest whole dollar.) a. Depreciation on shop equipment for the month is 15% p.a. prime cost (straight line). b. One-twelfth of the insurance expired. C. Superannuation payable for the month is 10.0% of the gross wages paid. d. Interest charged on the bank loan for the month was $154. Date Description Post ref. Credit 20xx Debit June (Depreciation for the month) (Amount of prepaid insurance expired for June) (Superannuation payable for Dune) (Interest charged to bank loan for June)