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Skate ' n ' Surf began operations on 1 June, buying and selling surfboards, skateboards, wetsuits and the protective gear for skateboarding. The structure of
Skate n Surf began operations on 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. Tax is deducted from the employee's wages PAYG withholding tax and remitted to the Australian Taxation Office ATO 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 then posted to the appropriate accounts 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. Cash at bankAccounts receivableInventoryPrepaid insuranceShop equipment costAccumulated depreciation shop equipmentAccounts payablePAYG withholding payableSuperannuation payableBank loanCapitalDrawingsProfit or loss summarySales revenueSales returns and allowancesDiscount receivedCost of salesAdvertising expenseDepreciation expenseDiscount allowedElectricity expenseInsurance expenseInterest expenseStationerySuperannuation expenseTelephone expenseWages expense TransactionsJuneThe owner opened a bank account for the business with a deposit of $ This is capital provided by him. Purchased display stands, shelving etc. shop equipment from Shop Displays Pty Ltd for $ and computer equipment for the shop from Computer Wizards for $ These were paid for with a loan of $ from the bank and cheque for $ from the business bank account. The bank loan is repayable over years. Paid $ for a year insurance policy covering fire, theft, and public liability. Purchased inventory skateboards and protective gear from Excitement Plus for $ on terms on net Paid $ to Local Newspapers for advertising for the shop for the month. Cash sale of a skateboard and protective gear for $cost of sales $ Purchased surfboards and wetsuits from Surf Imports for $ on terms of n Returned some protective gear to Excitement Plus that was faulty and received an adjustment note credit note from them for $ Credit sale to Serious Fun of skateboards and protective gear for $cost of sales $ This customer was given terms of n Paid Surf Imports the amount owing to them less the prompt payment discount. Credit sale to Surfing World of various inventory items for $cost of sales $ Terms net Cash purchase of stationery from Officeworks for $ Credit sale to Academy Diving School of wetsuits at a discounted price of $ each on terms of net Cost of sales $ Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. Cash sale of inventory to the value of $cost of sales $ Issued an adjustment note credit note to Academy Diving School for wetsuit at $ each that was not the size they required. The cost of the wetsuit to us was $ and it was put back into inventory. Paid Excitement Plus $ of the amount owing to them. Credit sale to Serious Fun of skateboards for $cost of sales $ Terms n Purchased wetsuits from Surf Imports for $ on terms of nReceived and banked a cheque from Academy Diving School for the amount owing by them. The owner cashed a cheque for $ to pay wages to Scott Walker the sales assistant of $ less PAYG Withholding of $ and $ drawings for himself. Journalise the June transactions.
Skate n Surf began operations on 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. Tax is deducted from the employee's wages PAYG withholding tax and remitted to the Australian Taxation Office ATO 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 then posted to the appropriate accounts 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.
Cash at bankAccounts receivableInventoryPrepaid insuranceShop equipment costAccumulated depreciation shop equipmentAccounts payablePAYG withholding payableSuperannuation payableBank loanCapitalDrawingsProfit or loss summarySales revenueSales returns and allowancesDiscount receivedCost of salesAdvertising expenseDepreciation expenseDiscount allowedElectricity expenseInsurance expenseInterest expenseStationerySuperannuation expenseTelephone expenseWages expense
TransactionsJuneThe owner opened a bank account for the business with a deposit of $ This is capital provided by him.
Purchased display stands, shelving etc. shop equipment from Shop Displays Pty Ltd for $ and computer equipment for the shop from Computer Wizards for $ These were paid for with a loan of $ from the bank and cheque for $ from the business bank account. The bank loan is repayable over years.
Paid $ for a year insurance policy covering fire, theft, and public liability.
Purchased inventory skateboards and protective gear from Excitement Plus for $ on terms on net
Paid $ to Local Newspapers for advertising for the shop for the month.
Cash sale of a skateboard and protective gear for $cost of sales $
Purchased surfboards and wetsuits from Surf Imports for $ on terms of n
Returned some protective gear to Excitement Plus that was faulty and received an adjustment note credit note from them for $
Credit sale to Serious Fun of skateboards and protective gear for $cost of sales $ This customer was given terms of n
Paid Surf Imports the amount owing to them less the prompt payment discount.
Credit sale to Surfing World of various inventory items for $cost of sales $ Terms net
Cash purchase of stationery from Officeworks for $
Credit sale to Academy Diving School of wetsuits at a discounted price of $ each on terms of net Cost of sales $
Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
Cash sale of inventory to the value of $cost of sales $
Issued an adjustment note credit note to Academy Diving School for wetsuit at $ each that was not the size they required. The cost of the wetsuit to us was $ and it was put back into inventory.
Paid Excitement Plus $ of the amount owing to them.
Credit sale to Serious Fun of skateboards for $cost of sales $ Terms n
Purchased wetsuits from Surf Imports for $ on terms of nReceived and banked a cheque from Academy Diving School for the amount owing by them.
The owner cashed a cheque for $ to pay wages to Scott Walker the sales assistant of $ less PAYG Withholding of $ and $ drawings for himself.
Journalise the June transactions.
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