Complete end of year closing entries and complete the closing process in the general ledger.

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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 1 7 Transactions June 1 The owner opened a bank account for the business with a deposit of $35,000. This is capital provided by him. Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $35,000 and computer equipment for the shop from Computer Wizards for $5,000. These were paid for with a loan of $38,000 from the bank and cheque for $2,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $5,040 for a 1-year insurance policy covering fire, theft, and public liability. 2 Paid $1,090 to Local Newspapers for advertising for the shop for the month. 5 Purchased inventory (skateboards and protective gear) from Excitement plus for $24,000 on terms on net 30. Purchased surfboards and wetsuits from Surf Imports for $21,000 on terms of 10/10, n/30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,500 (cost of sales $2,700). This customer was given terms of 5/10, n/30. 8 Cash sale of a skateboard and protective gear for $590 (cost of sales $220). 11 Cash purchase of postage stamps and stationery from Australia Post for $190. 12 Credit sale to Surfing World of various inventory items for $7,940 (cost of sales $4,900). Terms net 30. 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $180. 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 $390 each on terms of net 15. Cost of sales $5,100. 23 Paid Excitement Plus $3,800 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $390 each that was not the size they required. The cost of the wetsuit to us was $340 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for $8,600 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $8,200 (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 $550 to pay wages to Scott Walker the sales assistant of $600 less PAYG Withholding of $50. 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 $160. 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 28,080 Less: Sales returns and allowances 390 Net sales revenue 27,690 Less: Cost of sales 16,680 Gross profit 11,010 Other revenue: Discount received 2,100 13,110 Expenses Advertising expense 1,090 Depreciation expense 333 Discount allowed 275 Insurance expense 420 Interest expense 160 Postage and stationery expense 190 Superannuation exepnse 57 Wages expense 600 Total expenses 3,125 Net profit/(loss) $9,985 (b) Post end-of-year closing entries and complete the closing process in the general ledger. (Note: Leave blank any answer fields that do not require an answer.) No. 100 Debit Credit Cash at bank Date Details June 1 Capital 8 Sales revenue 13 Accounts receivable 27 Accounts receivable Date 35,000 June 590 5,225 5,460 Details 1 Shop equipment (cost) 2 Prepaid insurance 2 Advertising expense 11 Postage and stationery 14 Accounts payable 2,000 5,040 1,090 190 18,900 7 23 Accounts payable 3,800 30 Bank loan 1,000 30 Wages expense 550 July July No. 110 Debit Credit Accounts receivable Date Details June 8 Sales revenue 12 Sales revenue 17 Sales revenue 25 Sales revenue Date 5,500 June 7,940 5,850 8,200 Details 13 Cash at bank 13 Discount allowed 24 Sales returns and allowances 27 Cash at bank 5,225 275 390 5,460 July July No. 120 Inventory Date June Debit Credit Details 5 Accounts payable 7 Accounts payable 24 Cost of sales 24 Accounts payable Date 24,000 June 21,000 340 8,600 Details 8 Cost of sales 8 Cost of sales 12 Accounts payable 12 Cost of sales 220 2,700 180 4,900 17 Cost of sales 5,100 25 Cost of sales 4,100 July July No. 130 Prepaid insurance Date Details June 2 Cash at bank Debit Credit Date 5,040 June Details 30 Insurance expense 420 July July No. 171 Debit Date Details Credit Shop equipment (cost) Date Details June 1 Bank loan 1 Cash at bank 38,000 2,000 $40,000 No. 172 Accumulated depreciation - shop equipment Date Details Debit Date Details Credit June 30 Depreciation expense 333 No. 200 Debit Date Details Credit Accounts payable Date Details June 12 Inventory 14 Cash at bank 14 Discount received 180 June 18,900 2,100 5 Inventory 7 Inventory 24 Inventory 24,000 21,000 8,600 23 Cash at bank 3,800 V July July No. 210 PAYG withholding payable Date Details Debit Credit Date June Details 30 Wages expense 50 No. 220 Superannuation payable Date Details Debit Date Credit Details 30 Superannuation expense June 57 Bank loan No. 230 Debit Credit Date June Details 30 Cash at bank Date 1,000 June Details 1 Shop equipment (cost) 38,000 30 Interest expense 160 $ July July No. 300 Capital Date Details Debit Date Details Credit June June 1 Cash at bank 35,000 S Drawings No. 310 Date Details Debit Date Details Credit No. 320 Profit or loss summary Date Details Debit Date Details Credit June June No. 400 Sales revenue Date Details Debit Date Details Credit June June 8 Cash at bank 590 V 8 Accounts receivable 5,500 7 12 Accounts receivable 7,940 17 Accounts receivable 5,850 V 25 Accounts receivable 8,200 No. 610 Depreciation expense Date Details Debit Date Details Credit June 30 Accumulated depreciation - shop equipment 333 June No. 620 Discount allowed Date Details Debit Date Details Credit June 13 Accounts receivable 275 June No. 630 Electricity expense Date Details Debit Date Details Credit No. 640 Insurance expense Date Details Debit Date Details Credit June 30 Prepaid insurance 420 June No. 650 Interest expense Date Details Debit Date Details Credit June 30 Bank loan 160 June No. 660 Postage and stationery expense Date Details Debit Date Details Credit June 11 Cash at bank 190 June No. 670 Superannuation expense Date Details Debit Date Details Credit June 30 Superannuation payable 57 June No. 680 Telephone expense Date Details Debit Date Details Credit No. 690 Wages expense Date Details June 30 Cash at bank Debit Date Details Credit 550 June 30 PAYG withholding payable 50 100 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 1 7 Transactions June 1 The owner opened a bank account for the business with a deposit of $35,000. This is capital provided by him. Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $35,000 and computer equipment for the shop from Computer Wizards for $5,000. These were paid for with a loan of $38,000 from the bank and cheque for $2,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $5,040 for a 1-year insurance policy covering fire, theft, and public liability. 2 Paid $1,090 to Local Newspapers for advertising for the shop for the month. 5 Purchased inventory (skateboards and protective gear) from Excitement plus for $24,000 on terms on net 30. Purchased surfboards and wetsuits from Surf Imports for $21,000 on terms of 10/10, n/30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,500 (cost of sales $2,700). This customer was given terms of 5/10, n/30. 8 Cash sale of a skateboard and protective gear for $590 (cost of sales $220). 11 Cash purchase of postage stamps and stationery from Australia Post for $190. 12 Credit sale to Surfing World of various inventory items for $7,940 (cost of sales $4,900). Terms net 30. 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $180. 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 $390 each on terms of net 15. Cost of sales $5,100. 23 Paid Excitement Plus $3,800 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $390 each that was not the size they required. The cost of the wetsuit to us was $340 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for $8,600 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $8,200 (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 $550 to pay wages to Scott Walker the sales assistant of $600 less PAYG Withholding of $50. 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 $160. 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 28,080 Less: Sales returns and allowances 390 Net sales revenue 27,690 Less: Cost of sales 16,680 Gross profit 11,010 Other revenue: Discount received 2,100 13,110 Expenses Advertising expense 1,090 Depreciation expense 333 Discount allowed 275 Insurance expense 420 Interest expense 160 Postage and stationery expense 190 Superannuation exepnse 57 Wages expense 600 Total expenses 3,125 Net profit/(loss) $9,985 (b) Post end-of-year closing entries and complete the closing process in the general ledger. (Note: Leave blank any answer fields that do not require an answer.) No. 100 Debit Credit Cash at bank Date Details June 1 Capital 8 Sales revenue 13 Accounts receivable 27 Accounts receivable Date 35,000 June 590 5,225 5,460 Details 1 Shop equipment (cost) 2 Prepaid insurance 2 Advertising expense 11 Postage and stationery 14 Accounts payable 2,000 5,040 1,090 190 18,900 7 23 Accounts payable 3,800 30 Bank loan 1,000 30 Wages expense 550 July July No. 110 Debit Credit Accounts receivable Date Details June 8 Sales revenue 12 Sales revenue 17 Sales revenue 25 Sales revenue Date 5,500 June 7,940 5,850 8,200 Details 13 Cash at bank 13 Discount allowed 24 Sales returns and allowances 27 Cash at bank 5,225 275 390 5,460 July July No. 120 Inventory Date June Debit Credit Details 5 Accounts payable 7 Accounts payable 24 Cost of sales 24 Accounts payable Date 24,000 June 21,000 340 8,600 Details 8 Cost of sales 8 Cost of sales 12 Accounts payable 12 Cost of sales 220 2,700 180 4,900 17 Cost of sales 5,100 25 Cost of sales 4,100 July July No. 130 Prepaid insurance Date Details June 2 Cash at bank Debit Credit Date 5,040 June Details 30 Insurance expense 420 July July No. 171 Debit Date Details Credit Shop equipment (cost) Date Details June 1 Bank loan 1 Cash at bank 38,000 2,000 $40,000 No. 172 Accumulated depreciation - shop equipment Date Details Debit Date Details Credit June 30 Depreciation expense 333 No. 200 Debit Date Details Credit Accounts payable Date Details June 12 Inventory 14 Cash at bank 14 Discount received 180 June 18,900 2,100 5 Inventory 7 Inventory 24 Inventory 24,000 21,000 8,600 23 Cash at bank 3,800 V July July No. 210 PAYG withholding payable Date Details Debit Credit Date June Details 30 Wages expense 50 No. 220 Superannuation payable Date Details Debit Date Credit Details 30 Superannuation expense June 57 Bank loan No. 230 Debit Credit Date June Details 30 Cash at bank Date 1,000 June Details 1 Shop equipment (cost) 38,000 30 Interest expense 160 $ July July No. 300 Capital Date Details Debit Date Details Credit June June 1 Cash at bank 35,000 S Drawings No. 310 Date Details Debit Date Details Credit No. 320 Profit or loss summary Date Details Debit Date Details Credit June June No. 400 Sales revenue Date Details Debit Date Details Credit June June 8 Cash at bank 590 V 8 Accounts receivable 5,500 7 12 Accounts receivable 7,940 17 Accounts receivable 5,850 V 25 Accounts receivable 8,200 No. 610 Depreciation expense Date Details Debit Date Details Credit June 30 Accumulated depreciation - shop equipment 333 June No. 620 Discount allowed Date Details Debit Date Details Credit June 13 Accounts receivable 275 June No. 630 Electricity expense Date Details Debit Date Details Credit No. 640 Insurance expense Date Details Debit Date Details Credit June 30 Prepaid insurance 420 June No. 650 Interest expense Date Details Debit Date Details Credit June 30 Bank loan 160 June No. 660 Postage and stationery expense Date Details Debit Date Details Credit June 11 Cash at bank 190 June No. 670 Superannuation expense Date Details Debit Date Details Credit June 30 Superannuation payable 57 June No. 680 Telephone expense Date Details Debit Date Details Credit No. 690 Wages expense Date Details June 30 Cash at bank Debit Date Details Credit 550 June 30 PAYG withholding payable 50