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 $30,400. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $28,700 and computer equipment for the shop from Computer Wizards for $3,700. These were paid for with a loan of $28,700 from the bank and cheque for $3,700 from the business bank account. The bank loan is repayable over 3 years. 2 Purchased inventory (skateboards and protective gear) from Excitement Plus for $25,300 on terms on net 30. 5 Cash purchase of stationery from Officeworks for $310. 7 Purchased surfboards and wetsuits from Surf Imports for $19,000 on terms of 10/10, n/30. 9 Paid Surf Imports the amount owing to them less the prompt payment discount. 11 Paid $3,060 for a 1-year insurance policy covering fire, theft, and public liability. 12 Paid $1,520 to Local Newspapers for advertising for the shop for the month. 13 Credit sale to Serious Fun of skateboards and protective gear for $4,100 (cost of sales $2,000). This customer was given terms of 5/10, n/30. 14 Credit sale to Surfing World of various inventory items for $7,100 (cost of sales $4,400). Terms net 30. 17 Credit sale to Academy Diving School of 20 wetsuits at a discounted price of $270 each on terms of net 15. Cost of sales $2,800. 18 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $200. 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 3 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 $900 (cost of sales $500). 23 Paid Excitement Plus $2,500 of the amount owing to them. 25 Credit sale to Serious Fun of skateboards for $7,500 (cost of sales $3,800). Terms 5/10, n/30. 26 Received and banked a cheque for $5,400 from Surfing World in part payment of the amount owing by them. 27 Purchased wetsuits from Surf Imports for $7,900 on terms of 10/10, n/30. 30 Paid Telstra $150 for telephone expenses. 30 The owner cashed a cheque for $860 to pay wages to Scott Walker the sales assistant of $890 less PAYG Withholding of $30. The end of month adjustments are below. 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 8% of the gross wages paid. d. Interest charged on the bank loan for the month was $120. The transactions above have been journalised and posted. The adjusted trial balance is below. The transactions above have been journalised and posted. The adjusted trial balance is Skate 'n' Surf Adjusted trial balance as at 30 June 20XX Account no. Account Debit Credit 100 Cash at bank 11,395 110 Accounts receivable 13,790 120 Inventory 38,850 130 Prepaid insurance 2,805 171 Shop equipment (cost) 32,400 172 Accumulated depreciation - shop equipment 405 200 Accounts payable 30,500 210 PAYG withholding payable 30 220 Superannuation payable 71 230 Bank loan 28,820 300 Capital 30,400 400 Sales revenue 25,000 410 Sales returns and allowances 810 420 Discount received 1,900 500 Cost of sales 13,150 600 Advertising expense 1,520 610 Depreciation expense 405 620 Discount allowed 205 640 Insurance expense 255 650 Interest expense 120 660 Postage and stationery expense 310 670 Superannuation expense 71 680 Telephone expense 150 690 Wages expense 890 $117,126 $117,126 Sales revenue Less: Net sales revenue Less: Gross profit Other revenue: Expenses Total expenses Net profit / (loss)
