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Question 1 (Note: Although this question is based on the Skate w Surf business the accounts, amounts and transactions involved may differ between questions, Please

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Question 1 (Note: Although this question is based on the Skate w Surf business the accounts, amounts and transactions involved may differ between questions, Please read each question separately.) Skate 'n' Surf began operations on 1 June, buying and selling surfboards, skateboards, wetsuits and the protective gear for skateboarding. The structure of the business is that of a sole trader. The business employed a sales assistant during the month who is to be paid fortnightly. Tex is deducted from the employees wages (PAYG withholding tex) and remitted to the Australian Taxation Office (ATO) on a quarterly becic. The business has not registered with the ATO for the goods and services tex (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 then posted to the appropriate account(s) in the general ledger. The accounts receivable and accounts payable subsidiary ledgers are provided for information only, you are not required to post to these ledgers. Chart of accounts The chart of accounts for Skate 'n' 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 equipment 200 Accounts payable 210 PAYG withholding payable 220 Superannuateon 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 650 Stationery 670 Superannustian expense 650 Telephone expense 690 Wages Expense Transactions

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