Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Post the above adjusting entries to the general ledger below. (Note: Leave blank any answer fields that do not require an answer.) 100 Cash at

image text in transcribedimage text in transcribedimage text in transcribed

Post the above adjusting entries to the general ledger below. (Note: Leave blank any answer fields that do not require an answer.)

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

100 Cash at bank 110 Accounts receivable 120 Inventory 130 Prepaid insurance 171 Shop equipment (cost) 172 Accumulated depreciation - shop equipment 200 Accounts payable 210 PAYG withholding payable 220 Superannuation payable 230 Bank loan 300 Capital 310 Drawings 320 Profit or loss summary 400 Sales revenue 410 Sales returns and allowances 420 Discount received 500 Cost of sales 600 Advertising expense 610 Depreciation expense 620 Discount allowed 630 Electricity expense 640 Insurance expense 650 Interest expense 660 Postage and stationery expense 670 Superannuation expense 680 Telephone expense 690 Wages expense June 1 The owner opened a bank account for the business with a deposit of $24,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $32,500 and computer equipment for the shop from Computer Wizards for $3,500. These were paid for with a loan of $28,800 from the bank and cheque for $7.200 from the business bank account. The bank loan is repayable over 3 years. 1 Paid $3,360 for a 1-year insurance policy covering fire, theft, and public liability. 2 Purchased inventory (skateboards and protective gear) from Excitement plus for $17,000 on terms on net 30. 5 Paid $1,200 to Local Newspapers for advertising for the shop for the month. 6 Cash sale of a skateboard and protective gear for $400 (cost of sales $150). 7 Purchased surfboards and wetsuits from Surf Imports for $16,200 on terms of 10/10, n/30. 8 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $100. 9 Credit sale to Serious Fun of skateboards and protective gear for $4,200 (cost of sales $1,700). This customer was given terms of 5/10, n/30. 11 Paid Surf Imports the amount owing to them less the prompt payment discount. 12 Credit sale to Surfing World of various inventory items for $6,700 (cost of sales $3,200). Terms net 30. 13 Cash purchase of stationery from Officeworks for $250. 14 Credit sale to Academy Diving School of 10 wetsuits at a discounted price of $200 each on terms of net 15. Cost of sales $2,200. 18 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. 19 Cash sale of inventory to the value of $800 (cost of sales $300). 20 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $200 each that was not the size they required. The cost of the wetsuit to us was $100 and it was put back into inventory. 24 Paid Excitement plus $4,500 of the amount owing to them. 25 Credit sale to Serious Fun of skateboards for $6,200 (cost of sales $2,000). Terms 5/10, n/30. 26 Purchased wetsuits from Surf Imports for 55,500 on terms of 10/10, n/30. 27 Received and banked a cheque from Academy Diving School for the amount owing by them. 30 The owner cashed a cheque for $1,650 to pay wages to Scott Walker the sales assistant of $800 less PAYG Withholding of $50, and $900 drawings for himself. The June transactions above have been journalised and posted. Following are the end of month adjustments (round to the nearest dollar), which are also journalised. a. Depreciation on shop equipment for the month is 20% p.a. prime cost (straight line). b. One-twelfth of the insurance expired. c. Superannuation payable for the month is 9% of the gross wages paid. d. Interest charged on the bank loan for the month was $120. Date Description Post ref. Debit Credit 20xx June 30 Depreciation expense 600 Accumulated depreciation - shop equipment 600 (Depreciation for the month) 30 Insurance expense 280 Prepaid insurance 280 (Amount of prepaid insurance expired for June) 30 Superannuation expense 72 Superannuation payable 72 (Superannuation payable for June) 30 Interest expense 120 Bank loan 120 (Interest charged to bank loan for June) Post the above adjusting entries to the general ledger below. (Note: Leave blank any answer fields that do not require an answer.) No. 100 Debit Credit Cash at bank Date Details June 1 Capital 6 Sales revenue 18 Accounts receivable 19 Sales revenue 27 Accounts receivable Date 24,000 June 400 3,990 800 1,800 Details 1 Shop equipment (cost) 1 Prepaid insurance 5 Advertising expense 11 Accounts payable 13 Postage and stationery expense 24 Accounts payable 30 Wages expense 30 Drawings 7,200 3,360 1,200 14,580 250 4,500 750 900 No. 110 Details Debit Credit Accounts receivable Date June 9 Sales revenue 12 Sales revenue 14 Sales revenue 25 Sales revenue Date 4,200 June 6,700 2.000 6,200 Details 18 Cash at bank 18 Discount allowed 20 Sales returns and allowances 27 Cash at bank 3,990 210 200 1,800 No. 120 Inventory Date June Details Debit Details Credit 2 Accounts payable 7 Accounts payable 20 Cost of sales 26 Accounts payable Date 17,000 June 16,200 100 5,500 6 Cost of sales 8 Accounts payable 9 Cost of sales 12 Cost of sales 14 Cost of sales 19 Cost of sales 25 Cost of sales 150 100 1,700 3,200 2,200 300 2,000 No. 130 Prepaid insurance Date Details Debit Date Details Credit June 1 Cash at bank 3,360 June No. 171 Shop equipment (cost) Date June 1 Bank loan 1 Cash at bank Details Debit Details Credit Date 28,800 7,200 No. 172 Accumulated depreciation - shop equipment Date Details Debit Date Details Credit June No. 200 Debit Date Det Credit Accounts payable Date etails June 8 Inventory 11 Cash at bank 11 Discount received 24 Cash at bank PAYG withholding payable Date Details 100 June 14,580 1,620 4,500 2 Inventory 7 Inventory 26 Inventory 17,000 16,200 5,500 No. 210 Debit Details Credit Date June 30 Wages expense 50 No. 220 Superannuation payable Date Details Debit Date Details Credit June No. 230 Bank loan Date Details Debit Date Credit Details 1 Shop equipment (cost) June 28,800 No. 300 Capital Date Details Debit Details Credit Date June 1 Cash at bank 24,000 No. 310 Drawings Date June Details Debit Date Details Credit 30 Cash at bank 900 No. 400 Sales revenue Date Details Debit Credit Date June Details 6 Cash at bank 9 Accounts receivable 12 Accounts receivable 14 Accounts receivable 19 Cash at bank 25 Accounts receivable 400 4,200 6,700 2,000 800 6,200 No. 410 Debit Date Details Credit 200 Sales returns and allowances Date Details June 20 Accounts receivable Discount received Date Details No. 420 Debit Details Credit Date June 11 Accounts payable 1,620 No. 500 Details Debit Details Credit June 20 Inventory 100 Cost of sales Date 6 Inventory 9 Inventory 12 Inventory 14 Inventory 20 Inventory 25 Inventory Date 150 June 1,700 3,200 2,200 300 2,000 No. 600 Advertising expense Date June 5 Cash at bank Details Debit Date Details Credit 1,200 No. 610 Depreciation expense Date Details Debit Date Details Credit June No. 620 Discount allowed Date Details June 18 Accounts receivable Debit Date Details Credit 210 No. 640 Insurance expense Date Details Debit Date Details Credit June No. 650 Interest expense Date Details Debit Date Details Credit June No. 660 Postage and stationery expense Date June 13 Cash at bank Details Debit Date Details Credit 250 No. 670 Superannuation expense Date Details Debit Date Details Credit June No. 690 Debit Date Details Credit Wages expense Date Details June 30 Cash at bank 30 PAYG withholding payable 750 50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Describe contextual influences on direct financial compensation.

Answered: 1 week ago

Question

Describe legally required benefits.

Answered: 1 week ago

Question

Discuss career development and career development methods.

Answered: 1 week ago