Journalise and of your closing entry
Transactions June 1 The owner opened a bank account for the business with a deposit of $31,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $31,000 and computer equipment for the shop from Computer Wizards for $4,000. These were paid for with a loan of $31,000 from the bank and cheque for $4,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $4,920 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. 5 Purchased inventory (skateboards and protective gear) from Excitement Plus for $23,000 on terms on net 30 . 7 Purchased surfboards and wetsuits from Surf Imports for $24,000 on terms of 10/10,n/30. 8 Credit sale to Serious Fun of skateboards and protective gear for $6,000 (cost of sales $2,600). This customer was given terms of 5/10,n/30. 8 Cash sale of a skateboard and protective gear for $530 (cost of sales $210 ). 11 Cash purchase of postage stamps and stationery from Australia Post for $120. 12 Credit sale to Surfing World of various inventory items for $7,940 (cost of sales $4,400 ). Terms net 30 . 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $120. 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 14 wetsuits at a discounted price of $380 each on terms of net 15. Cost of sales $4,620. 23 Paid Excitement Plus $3,700 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $380 each that was not the size they required. The cost of the wetsuit to us was $330 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 $8,100 (cost of sales $4,000 ). 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 $900 was made on the bank loan. 30. The owner cashed a cheque for $555 to pay wages to 5 cott Walker the sales assistant of $600 less PAYG Withholding of $45. 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 10% of the gross wages paid. d. Interest charged on the bank loan for the month was $154. Skate ' n ' Surf Statement of profit or loss for the period 1 June to 30 June 20XX Revenue Sales revenue (To close revenue accounts) (To close expense accounts) (To close profit to capital account)
