Journalising End Of Month Adjustments

Rounding to nearest whole dollar

Skate Surf began operations on 1 June, buying and selling surfboards, skateboards, wetsuits and the protective gear for skateboarding. The structure of the business that of a scaletrader. The business employed a sales assistant during the month who is to be paid fortnightly. Tax is deducted from the employee's wages (PAYG withholding tax) and remitted to the Australian Taxation Office (ATC) on a quarterly basis. The business has not registered with the ATO for the goods and services tax (GST) and has elected to use the accrual basis of accounting. Accounting records The business records all transactions in the general Journal. These transactions are the posted to the appropriate accounts) in the general ledger and the accounts receivable or accounts payable subsidiary ledgers, where separate accounts are maintained for each customer or suppler Chart of accounts The chart of accounts for Skate 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 gimant 200 Accounts payable 210 PAYG withholding payable 220 Superannuation payable 290 tank loan 300 Capital 310 Drawing 320 Profor loss summary 400 Sales revenue 410 Sales returns and allowances 420 Discount rolved 500 Cost of sales 600 Advergence 610 Depreciation expense 620 Discount alowed 690 lectrice pense 650 interes perse 66 Postage and stationery expense 670 Superannuation expense 680 Telephone por 690 Wages pense Transactions June 1 The owner Opened a bank account for the business with a deposit of $33,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $33,000 and computer equipment for the shop from Computer Wizards for $8,000. These were paid for with a loan of $38,000 from the bank and cheque for $3,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $3,840 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. 7 Purchased inventory (skateboards and protective gear) from Excitement Plus for $20,000 on terms on net 30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,100 (cost of sales $2,300). This customer was given terms of 5/10, 1/30. 8 Cash sale of a skateboard and protective gear for $600 (cost of sales $200). 11 Cash purchase of postage stamps and stationery from Australia Post for $100. 12 Credit sale to Surfing World of various inventory items for $7,970 (cost of sales $4,700). Terms net 30. 12 Retured 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 Pun for the amount owing by them after deducting the prompt payment discount. 14 Paid Surf Imports the amount owing to the less the prompt payment discount 17 Credit sale to Academy Diving School of 14 wetsuits at a discounted price of $340 each on terms of net 15. Cost of sales $3,300. 23 Paid Excitement Plus $3,000 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $340 each that was not the size they required. The cost of the wetsuit to us was $180 and it was put back into inventory 24 Purchased wetsuits from Surf Imports for $8.600 on terms of 10/10, 130 25 Crede sale to Serious Fun of skateboards for $7.000 (cost of sales $3,900). Terms 10,30 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 The owner cashed a chaque for $730 to pay wages to Scott Walker the sales assistant of $780 less PAYG withholding of $50, 15.770 The June transactions above have been journalised and posted Skate Surf Trial balance as at 30 June 200X ACCOUNT AL Del Cra Cash at banke 110 Accounts receivable Inventory 37,210 130 Prepaid Insurance 3,840 171 Shop equipment (cost) 41,000 200 Accounts payable 24,530 210 PAYG withholding payable 50 230 Bank loan 37.100 300 Capital 33,000 400 Sales revenue 26.230 Sales returns and allowances 340 Discount received 2.100 500 Cost of sales 14,220 600 Advertising expense 1,160 Discount allowed 255 660 Postage and stationery expense 100 690 Wages expense 780 $123.210 $123.210 Journalise the following end-of-month adjustments (Note Enter debit entries first followed by credit entries in the general Journal Credit accounts are automatically indested when the amount is entered. Do not indent manually. Leave blank any answer le that do not require an answer Howrid answer to the nearest whole dollar) a Depreciation on the equipment for the month is 10% pa prime cost (raight line) B.One-tworth of the insurance expired. c. Supervation payable for the month is 10.0% of the gross wages paid. d. Interest charged on the bank loan for the month was $156