Journalise end-of-year closing entries. (Note: Enter debit entries first, followed by credit entries in the general journal. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Leave blank any answer fields that do not require an answer. Enter accounts following the order of accounts given in the statement of profit or loss.)

2 5 8 June 1 The owner opened a bank account for the business with a deposit of $36,000. This is capital provided by him. Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $36,000 and computer equipment for the shop from Computer Wizards for $6,000. These were paid for with a loan of $38,000 from the bank and cheque for $4,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $4,440 for a 1-year insurance policy covering fire, theft, and public liability. Paid $1,080 to Local Newspapers for advertising for the shop for the month. Purchased inventory (skateboards and protective gear) from Excitement plus for $26,000 on terms on net 30. 7 Purchased surfboards and wetsuits from Surf Imports for $25,000 on terms of 10/10, n/30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,200 (cost of sales $2,000). This customer was given terms of 5/10, n/30. Cash sale of a skateboard and protective gear for $570 (cost of sales $230). 11 Cash purchase of postage stamps and stationery from Australia Post for $120. 12 Credit sale to Surfing World of various inventory items for $7,950 (cost of sales $4,700). Terms net 30. 12 Returned some protective gear to Excitement plus that was faulty and received an adjustment note (credit note) from them for $140. 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 $400 each on terms of net 15. Cost of sales $5,600. 23 Paid Excitement Plus $3,700 of the amount owing to them. Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $400 each that was not the size they required. The cost of the wetsuit 24 to us was $350 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for $9,400 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $7,800 (cost of sales $4,200). 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 $780 to pay wages to Scott Walker the sales assistant of $800 less PAYG Withholding of $20. 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 $150. Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20xx Revenue Sales revenue Sales revenue 27,920 Less: Sales returns and allowances 400 Net sales revenue 27,520 Less: Cost of sales 16,380 Gross profit 11,140 Other revenue: Discount received 2,500 13,640 Expenses Advertising expense 1,080 Depreciation expense 350 Discount allowed 260 Insurance expense 370 Interest expense 150 Postage and stationery expense 120 Superannuation exepnse expense 800 Total expenses 3,206 Net profit/(loss) $10,434 76 Details Post ref. Debit Credit Date 20xx June 30 27920 Sales Revenue Discount Received 2500 profit or loss summary (To close revenue accounts) (To close expense accounts) (To close profit to capital account)