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.) Date Details Post ref. Debit Credit 20xx June 30 V Sales revenue 27,460 Discount received 2,300 29,760 Profit or loss summary (To close revenue accounts) 30 Profit or loss summary 18,112 Depreciation expense 450 Discount allowed 295 Insurance expense 340 152 Interest expense Postage and stationery 120 Superannuation expens 95 Wages expense 1,000 Cost of sales 14,200 Advertising expense 1,160 300 Sales returns and allow (To close expense accounts) 30 Profit or loss summary 11,648 11,648 Capital (To close profit to capital account) 1 2 7 Transactions June 1 The owner opened a bank account for the business with a deposit of $30,000. This is capital provided by him. Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $30,000 and computer equipment for the shop from Computer Wizards for $6,000. These were paid for with a loan of $32,000 from the bank and cheque for $4,000 from the business bank account. The bank loan is repayable over 4 years. Paid $4,080 for a 1-year insurance policy covering fire, theft, and public liability. 2 Paid $1,160 to Local Newspapers for advertising for the shop for the month. 5 Purchased inventory (skateboards and protective gear) from Excitement plus for $27,000 on terms on net 30. Purchased surfboards and wetsuits from Surf Imports for $23,000 on terms of 10/10, n/30. Credit sale to Serious Fun of skateboards and protective gear for $5,900 (cost of sales $2,200). This customer was given terms of 5/10, n/30. 8 Cash sale of a skateboard and protective gear for $590 (cost of sales $300). 11 Cash purchase of postage stamps and stationery from Australia Post for $120. 12 Credit sale to Surfing World of various inventory items for $7,970 (cost of sales $4,600). Terms net 30. 12 Returned some protective gear to Excitement plus that was faulty and received an adjustment note (credit note) from them for $170. 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 $300 each on terms of net 15. Cost of sales $3,000. 23 Paid Excitement Plus $4,100 of the amount owing to them. Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $300 each that was not the size they required. The cost of the wetsuit to us was $200 and it was put back into 24 inventory. 24 Purchased wetsuits from Surf Imports for $9,500 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $8,500 (cost of sales $4,300). 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 $970 to pay wages to Scott Walker the sales assistant of $1,000 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 10% of the gross wages paid. d. Interest charged on the bank loan for the month was $152. 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 27,460 Less: Sales returns and allowances 300 Net sales revenue 27,160 Less: Cost of sales 14,200 Gross profit 12,960 Other revenue: Discount received 2,300 15,260 Expenses Advertising expense 1,160 Depreciation expense 450 Discount allowed 295 Insurance expense 340 Interest expense 152 Postage and stationery expense 120 Superannuation exepnse 95 Wages expense 1,000 Total expenses 3,612 Net profit/(loss) $11,648 (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 30,000 June 590 5,605 4,200 Details 1 Shop equipment (cost) 2 Prepaid insurance 2 Advertising expense 11 Postage and stationery 14 Accounts payable 4,000 4,080 1,160 120 20,700 V 23 Accounts payable 4,100 V 30 Bank loan 900 30 Wages expense 970 July July No. 110 Debit Credit Accounts receivable Date Details June 8 Sales revenue 12 Sales revenue 17 Sales revenue Date 5,900 June 7,970 4,500 Details 13 Cash at bank 13 Discount allowed 24 Sales returns and allowances 5,605 295 300 No. 120 Inventory Date June Debit Credit Details 5 Accounts payable 7 Accounts payable 24 Cost of sales 24 Accounts payable Date 27,000 June 23,000 200 9,500 Details 8 Cost of sales 8 Cost of sales 12 Accounts payable 12 Cost of sales 17 Cost of sales 300 2,200 170 4,600 7 3,000 25 Cost of sales 4,300 July July No. 130 Prepaid insurance Date Details June 2 Cash at bank Debit Credit Date 4,080 June Details 30 Insurance expense 340 V July July No. 171 Shop equipment (cost) Date Details June 1 Bank loan Debit Date Details Credit 32,000 No. 200 Debit Credit Accounts payable Date Details June 12 Inventory 14 Cash at bank 14 Discount received Date 170 June 20,700 2,300 4,100 Details 5 Inventory 7 Inventory 24 Inventory 27,000 23,000 9,500 23 Cash at bank July July No. 210 PAYG withholding payable Date Details Debit Credit Date June Details 30 Wages expense 30 No. 220 Superannuation payable Date Details Debit Credit Date June Details 30 Superannuation expense 95 No. 230 Bank loan Date June Debit Credit Details 30 Cash at bank Date 900 June Details 1 Shop equipment (cost) 30 Interest expense 32,000 30 Balance c/d 30352 152 $ 32152 $ 32152 July July 1 Balance h/d 30352 No. 300 Capital Date Details Debit Date Details Credit June V June 1 Cash at bank 30,000 V No. 310 Drawings Date Details Debit Date Details Credit No. 320 Profit or loss summary Date Details Debit Date Details Credit June June V No. 400 Sales revenue Date Details Debit Date Details Credit June June 8 Cash at bank 590 8 Accounts receivable 5,900 V 12 Accounts receivable 7,970 17 Accounts receivable 4,500 No. 420 Discount received Date Details June Debit Date Details Credit June 14 Accounts payable 2,300 No. 500 Debit Credit Cost of sales Date Details June 8 Inventory 8 Inventory Date 300 June Details 24 Inventory 200 2,200 v 12 Inventory 4,600 17 Inventory 3,000 25 Inventory 4,300 $ No. 600 Advertising expense Date Details Debit Date Details Credit June 2 Cash at bank 1,160 June No. 610 Depreciation expense Date Details June 30 Accumulated depreciation - shop equipment Debit Date Details Credit 450 June V Discount allowed No. 620 No. 630 Electricity expense Date Details Debit Date Details Credit No. 640 Insurance expense Date Details Debit Date Details Credit June 30 Prepaid insurance 340 June No. 650 Interest expense Date Details June 30 Bank loan Debit Date Details Credit 152 June No. 660 Postage and stationery expense Date Details June 11 Cash at bank Debit Date Details Credit 120 June No. 670 Superannuation expense Date Details June 30 Superannuation payable Debit Date Details Credit 95 June No. 680 Telephone expense Date Details Debit Date Details Credit 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 970 June 30 PAYG withholding payable 30