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 $29,500. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $28,600 and computer equipment for the shop from Computer Wizards for $3,900. These were paid for with a loan of $28,600 from the bank and cheque for $3,900 from the business bank account. The bank loan is repayable over 3 years. 2 Purchased inventory (skateboards and protective gear) from Excitement Plus for $25,500 on terms on net 30. 5 Cash purchase of stationery from Officeworks for $350. 7 Purchased surfboards and wetsuits from Surf Imports for $19,600 on terms of 10/10, n/30. 9 Paid Surf Imports the amount owing to them less the prompt payment discount. 11 Paid $4,000 for a 1-year insurance policy covering fire, theft, and public liability. 12 Paid $1,540 to Local Newspapers for advertising for the shop for the month. 13 Credit sale to Serious Fun of skateboards and protective gear for $4,200 (cost of sales $2,800). This customer was given terms of 5/10, n/30. 14 Credit sale to Surfing World of various inventory items for $7,400 (cost of sales $4,100). Terms net 30. 17 Credit sale to Academy Diving School of 15 wetsuits at a discounted price of $270 each on terms of net 15. Cost of sales $2,600. 18 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $180. 18 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. 19 Issued an adjustment note (credit note) to Academy Diving School for 4 wetsuits at $270 each that was not the size they required. The cost of the wetsuits to us was $350 and they were put back into inventory. 20 Cash sale of inventory to the value of $1,000 (cost of sales $500). 23 Paid Excitement Plus $2,900 of the amount owing to them. 25 Credit sale to Serious Fun of skateboards for $7,700 (cost of sales $3,750). Terms 5/10, n/30. 26 Received and banked a cheque for $4,800 from Surfing World in part payment of the amount owing by them. 27 Purchased wetsuits from Surf Imports for $8,400 on terms of 10/10, n/30. 30 Paid Telstra $150 for telephone expenses. 30 The owner cashed a cheque for $840 to pay wages to Scott Walker the sales assistant of $890 less PAYG Withholding of $50. Post ref. Debit Credit 29,500 29,500 32,500 28,600 3,900 25,500 25,500 350 350 19,600 19,600 19,600 17,640 1,960 4,000 4,000 General journal Date Description 20xx June 1 Cash at bank Capital (Owner's capital contribution) 1 Shop equipment (cost) Bank loan Cash at bank (Display stands, shelving and computer for shop: loan repayable over 3 years) 2 Inventory Accounts payable (Inventory purchase on terms of net 30) 5 Postage and stationery expense Cash at bank (Cash purchase of stationery) 7 Inventory Accounts payable (Credit purchase on terms of 10/10, 1/30) 9 Accounts payable Cash at bank Discount received (Supplier paid less prompt payment discount) 11 Prepaid insurance Cash at bank (1 year insurance policy) 12 Advertising expense Cash at bank (Advertising for the month) 13 Accounts receivable Sales revenue (Credit sale on terms of 5/10, 1/30) 13 Cost of sales Inventory (Adjust inventory) 14 Accounts receivable Sales revenue (Credit sale on terms of net 30) 14 Cost of sales Inventory (Adjust inventory) 17 Accounts receivable Sales revenue (Credit sale on terms of net 15) 17 Cost of sales Inventory (Adjust inventory) 18 Accounts payable Inventory (Faulty protective gear returned to supplier) 18 Cash at bank 1,540 1,540 4,200 4,200 2,800 2,800 7,400 7,400 4,100 4,100 4,050 4,050 2.600 2,600 180 180 3,990 3,990 210 4,200 1,080 1,080 350 350 1,000 1,000 500 500 2,900 2,900 18 Cash at bank Discount allowed Accounts receivable (Payment received less prompt payment discount) 19 Sales returns and allowances Accounts receivable (Wetsuits returned by customer put back into inventory) 19 Inventory Cost of sales (Adjust inventory) 20 Cash at bank Sales revenue (Cash sale) 20 Cost of sales Inventory (Adjust inventory) 23 Accounts payable Cash at bank (Part payment of amount owing) 25 Accounts receivable Sales revenue (Credit sale on terms of 5/10, 1/30) 25 Cost of sales Inventory (Adjust inventory) 26 Cash at bank Accounts receivable (Payment received from customer) 27 Inventory Accounts payable (Credit purchase on terms of 10/10, n/30) 30 Telephone expense Cash at bank (Pay telephone expense) 30 Wages expense Cash at bank PAYG withholding payable (Wages paid to Scott Walker) 7,700 7,700 3,750 3,750 4,800 4,800 8,400 8,400 150 150 890 840 50 Post to the general ledger accounts. The accounts receivable and accounts payable subsidiary ledgers are provided for information only Accounts receivable subsidiary ledger Academy Diving School Acct code: ADI Date Explanation Debit Credit Balance June 17 Invoice 4,050 4,050 Dr 19 Adjustment note 1,080 2.970 Dr Serious Fun Acct code: SFU Date Explanation Debit Credit Balance June 13 Invoice 4,200 4,200 Dr 18 Receipt 4,200 0 25 Invoice 7,700 7,700 Dr Surfng World Acct code: SWO Date Explanation Debit Credit Balance June 14 Invoice 7,400 7,400 Dr 26 Receipt 4,800 2,600 Dr Accounts payable subsidiary ledger Debit Credit 25,500 180 2,900 Excitement Plus Date Explanation June 2 Invoice 18 Adjustment note 23 Payment Surf Imports Date Explanation June 7 Invoice 9 Payment 27 Invoice Acct code: EPL Balance 25,500 25,320 22,420 Acct code: SIM Balance 19,600 Debit Credit 19,600 19,600 8,400 8,400 No. 100 Cash at bank Date Details Debit Date Details Credit June June No. 110 Accounts receivable Date Details Debit Date Details Credit June June No. 120 Inventory Date Details Debit Date Details Credit June June No. 130 Prepaid insurance Date Details Debit Date Details Credit June No. 171 Shop equipment (cost) Date Details Debit Date Details Credit June No. 172 Accumulated depreciation - shop equipment Date Details Debit Date Details Credit No. 200 Accounts payable Date Details Debit Date Details Credit June June No. 210 PAYG withholding payable Date Details Debit Date Details Credit June No. 220 Superannuation payable Date Details Debit Date Details Credit No. 2301 Bank loan Date Details Debit Date Details Credit June Capital No. 300 Date Details Debit Date Details Credit June No. 310 Drawings Date Details Debit Date Details Credit No. 320 Profit or loss summary Date Details Debit Date Details Credit No. 400 Sales revenue Date Details Debit Date Details Credit June No. 410 Sales returns and allowances Date Details Debit Date Details Credit June No. 420 Discount received Date Details Debit Date Details Credit June No. 500 Cost of sales Date Details Debit Date Details Credit June June No. 600 Advertising expense Date Details Debit Date Details Credit June No. 610 Depreciation expense Date Details Debit Date Details Credit No. 620 Discount allowed Date Details Debit Date Details Credit June No. 630 Electricity expense Date Details Debit Date Details Credit No. 640 Insurance expense Date Details Debit Date Details Credit No. 650 Interest expense Date Details Debit Date Details Credit No. 660 Postage and stationery expense Date Details Debit Date Details Credit June No. 670 Superannuation expense Date Details Debit Date Details Credit No. 680 Telephone expense Date Details June Debit Date Details Credit No. 690 Wages expense Date Details Debit Date Details Credit June