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.)
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5 7 8 8 June 1 The owner opened a bank account for the business with a deposit of $36,000. This is capital provided by him. 1 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. 2 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. Purchased surfboards and wetsuits from Surf Imports for $25,000 on terms of 10/10, n/30. 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. 24 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 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. 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 $150. 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 27,920 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 76 Wages expense 800 Total expenses 3,206 Net profit/(loss) $10,434 CREDIT Entry Ref. Adj. 1 DEBIT 27,920 2,500 30,420 Adj. 2. 19,986 400 16,380 1,080 350 Date ACCOUNT TITLES AND EXPLANATION Jun. 30 Sales Revenue Discount Received Profit and loss summary (To close revenue accounts) Jun. 30 Profit and loss summary Sales Returns and Allowances Cost of Sales Advertising Expense Depreciation Expense Discount Allowed Insurance Expense Interest Expense Postage and Stationery Expense Superannuation Expense Wages Expense (To close expense accounts) Jun. 30 Profit and loss summary Owner's capital account (To transfer Net Profit to capital acount) 260 370 150 120 76 800 Adj. 3 10,434 10,434 No. 100 Date Debit Date Credit Cash at bank Details June 1 Capital 8 Sales revenue 13 Accounts receivable 27 Accounts receivable 36,000 June 570 4,940 6,000 Details Shop equipment (cost) 2 Prepaid insurance 2 Advertising expense 11 Postage and stationery 14 Accounts payable 4,000 4,440 1,080 120 22,500 23 Accounts payable 3,700 30 Bank loan 1,000 30 Wages expense 780 July July No. 110 Debit Credit Accounts receivable Date Details June 8 Sales revenue 12 Sales revenue 17 Sales revenue 25 Sales revenue Date 5,200 June 7,950 6,400 7,800 Details 13 Cash at bank 13 Discount allowed 24 Sales returns and allowances 27 Cash at bank 4,940 260 400 6,000 $ July 7 July No. 120 Inventory Date June Debit Credit Details 5 Accounts payable 7 Accounts payable 24 Cost of sales 24 Accounts payable Date 26,000 June 25,000 350 9,400 Details 8 Cost of sales 8 Cost of sales 12 Accounts payable 12 Cost of sales 17 Cost of sales 230 2,000 140 4,700 V 5,600 25 Cost of sales 4,200 $ July July V No. 130 Prepaid insurance Date Details June 2 Cash at bank Debit Credit Date 4,440 June Details 30 Insurance expense 370 V July July No. 171 Debit Date Details Shop equipment (cost) Date Details June 1 Bank loan 1 Cash at bank Credit 38,000 4,000 $42,000 No. 172 Accumulated depreciation - shop equipment Date Details Debit Date Details Credit June 30 Depreciation expense 350 No. 200 Debit Credit Accounts payable Date Details June 12 Inventory 14 Cash at bank 14 Discount received 23 Cash at bank Date 140 June 22,500 2,500 3,700 Details 5 Inventory 7 Inventory 24 Inventory 26,000 25,000 9,400 V July July No. 210 PAYG withholding payable Date Details Debit Credit Date June Details 30 Wages expense 20 No. 220 Superannuation payable Date Details Debit Credit Date June Details 30 Superannuation expense 76 No. 230 Bank loan Date June Debit Credit Details 30 Cash at bank Date 1,000 June Details 1 Shop equipment (cost) 30 Interest expense 38,000 150 July July No. 300 Capital Date Details Debit Date Details Credit June June 1 Cash at bank 36,000 Y Drawings No. 310 Date Details Debit Date Details Credit No. 320 Profit or loss summary Date Details Debit Date Details Credit June June S $ No. 400 Sales revenue Date Details Debit Date Details Credit June V June 8 Cash at bank 570 V 8 Accounts receivable 5,200 V 12 Accounts receivable 7,950 V 17 Accounts receivable 6,400 V 25 Accounts receivable 7,800 No. 410 Sales returns and allowances Date Details Debit Date Details Credit June 24 Accounts receivable 400 June No. 420 Discount received Date Details Debit Date Details Credit June June 14 Accounts payable 2,500 No. 500 Cost of sales Date Details 8 Inventory Debit Date Credit Details 24 Inventory June 230 June 350 8 Inventory 2,000 12 Inventory 4,700 7 17 Inventory 5,600 25 Inventory 4,200 No. 600 Advertising expense Date Details June 2 Cash at bank Debit Date Details Credit 1,080 June No. 610 Depreciation expense Date Details June 30 Accumulated depreciation - shop equipment Debit Date Details Credit 350 June No. 620 Discount allowed Date Details Debit Date Details Credit June 13 Accounts receivable 260 June No. 630 Electricity expense Date Details Debit Date Details Credit No. 640 Insurance expense Date Details June 30 Prepaid insurance Debit Date Details Credit 370 June No. 650 Interest expense Date Details June 30 Bank loan Debit Date Details Credit 150 June V No. 660 Postage and stationery expense Date Details June 11 Cash at bank Debit Date Details Credit 120 June V No. 670 Superannuation expense Date Details Debit Date Details Credit June 30 Superannuation payable 76 June No. 690 Wages expense Date Details June 30 Cash at bank Debit Details Credit Date 780 June 30 PAYG withholding payable 20 7
