7 8 Transactions June 1 The owner opened a bank account for the business with a deposit of $33,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $33,000 and computer equipment for the shop from Computer Wizards for $6,000. These were paid for with a loan of $36,500 from the bank and cheque for $2,500 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 $1,130 to Local Newspapers for advertising for the shop for the month. 5 Purchased inventory (skateboards and protective gear) from Excitement Plus for $29,000 on terms on net 30. Purchased surfboards and wetsuits from Surf Imports for $19,000 on terms of 10/10, n/30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,000 (cost of sales $2,800). This customer was given terms of 5/10, n/30. Cash sale of a skateboard and protective gear for $540 (cost of sales $220). 11 Cash purchase of postage stamps and stationery from Australia Post for $120. 12 Credit sale to Surfing World of various inventory items for $7,930 (cost of sales $4,200). Terms net 30. 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $160. 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 16 wetsuits at a discounted price of $370 each on terms of net 15. Cost of sales $5,120. 23 Paid Excitement Plus $3,900 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $370 each that was not the size they required. The cost of the wetsuit to us was $320 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for $9,000 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $8,000 (cost of sales $3,900). 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 $1,100 was made on the bank loan. 30 The owner cashed a cheque for $575 to pay wages to Scott Walker the sales assistant of $600 less PAYG Withholding of $25. The end of month adjustments are below. a. Depreciation on shop equipment for the month is 10% p.a. prime cost (straight line). b. One-twelfth of the insurance expired. C. Superannuation payable for the month is 10% of the gross wages paid. d. Interest charged on the bank loan for the month was $152. The transactions above have been journalised and posted. The statement or profit or loss for June is below. Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20xx Revenue Sales revenue Sales revenue Less: Sales returns and allowances Net sales revenue Less: Cost of sales Gross profit Other revenue: Discount received 27,390 370 27,020 15,920 11,100 1,900 13,000 Expenses Advertising expense Depreciation expense Discount allowed Insurance expense Interest expense Postage and stationery expense Superannuation exepnse Wages expense Total expenses Net profit/(loss) 1,130 325 250 340 152 120 57 600 2,974 $10,026 Details Post ref. Debit Credit Date 20xx June (To close revenue accounts) (To close expense accounts) (To close profit to capital account)