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. Tax is deducted from the employees 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 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		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

Transactions
June	1		The owner opened a bank account for the business with a deposit of $20,000. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $26,000 and computer equipment for the shop from Computer Wizards for $4,000. These were paid for with a loan of $24,000 from the bank and cheque for $6,000 from the business bank account. The bank loan is repayable over 4 years.
	1		Paid $3,900 for a 1-year insurance policy covering fire, theft, and public liability.
	2		Purchased inventory (skateboards and protective gear) from Excitement Plus for $20,000 on terms on net 30.
	5		Cash purchase of postage stamps and stationery from Australia Post for $350.
	7		Purchased surfboards and wetsuits from Surf Imports for $18,200 on terms of 10/10, n/30.
	8		Paid $1,400 to Local Newspapers for advertising for the shop for the month.
	8		Paid Surf Imports the amount owing to them less the prompt payment discount.
	11		Credit sale to Surfing World of various inventory items for $7,100 (cost of sales $3,600). Terms net 30.
	12		Credit sale to Academy Diving School of 13 wetsuits at a discounted price of $200 each on terms of net 15. Cost of sales $2,000.
	13		Credit sale to Serious Fun of skateboards and protective gear for $4,000 (cost of sales $1,800). This customer was given terms of 5/10, n/30.
	14		Cash sale of a skateboard and protective gear for $400 (cost of sales $180).
	18		Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
	23		Cash sale of inventory to the value of $900 (cost of sales $380).
	24		Issued an adjustment note (credit note) to Academy Diving School for 2 wetsuits at $200 each that was not the size they required. The cost of the wetsuits to us was $300 and they were put back into inventory.
	25		Paid Excitement Plus $4,500 of the amount owing to them.
	26		Credit sale to Serious Fun of skateboards for $6,500 (cost of sales $2,500). Terms 5/10, n/30.
	27		Purchased wetsuits from Surf Imports for $6,800 on terms of 10/10, n/30.
	27		Received and banked a cheque from Academy Diving School for the amount owing by them.
	30		Paid Energy Australia $150 for electricity expenses.
	30		The owner cashed a cheque for $1,750 to pay wages to Scott Walker the sales assistant of $800 less PAYG Withholding of $60, and $1,010 drawings for himself.

The June transactions above have been journalised and posted.

Cash at bank							No.100
Date		Details	Debit	Date		Details	Credit
June	1	Capital	20,000	June	1	Shop equipment (cost)	6,000
	14	Sales revenue	400		1	Prepaid insurance	3,900
	18	Accounts receivable	3,800		5	Postage and stationery expense	350
	23	Sales revenue	900		8	Advertising expense	1,400
	27	Accounts receivable	2,200		8	Accounts payable	16,380
					25	Accounts payable	4,500
					30	Electricity expense	150
					30	Wages expense	740
					30	Drawings	1,010

Accounts receivable							No.110
Date		Details	Debit	Date		Details	Credit
June	11	Sales revenue	7,100	June	18	Cash at bank	3,800
	12	Sales revenue	2,600		18	Discount allowed	200
	13	Sales revenue	4,000		24	Sales returns and allowances	400
	26	Sales revenue	6,500		27	Cash at bank	2,200

Inventory							No.120
Date		Details	Debit	Date		Details	Credit
June	2	Accounts payable	20,000	June	11	Cost of sales	3,600
	7	Accounts payable	18,200		12	Cost of sales	2,000
	24	Cost of sales	300		13	Cost of sales	1,800
	27	Accounts payable	6,800		14	Cost of sales	180
					23	Cost of sales	380
					26	Cost of sales	2,500

Prepaid insurance							No.130
Date		Details	Debit	Date		Details	Credit
June	1	Cash at bank	3,900

Shop equipment (cost)							No.171
Date		Details	Debit	Date		Details	Credit
June	1	Bank loan	24,000
June	1	Cash at bank	6,000

Accounts payable							No.200
Date		Details	Debit	Date		Details	Credit
June	8	Cash at bank	16,380	June	2	Inventory	20,000
	8	Discount received	1,820		7	Inventory	18,200
	25	Cash at bank	4,500		27	Inventory	6,800

PAYG withholding payable							No.210
Date		Details	Debit	Date		Details	Credit
				June	30	Wages expense	60

Bank loan							No.230
Date		Details	Debit	Date		Details	Credit
				June	1	Shop equipment (cost)	24,000

Capital							No.300
Date		Details	Debit	Date		Details	Credit
				June	1	Cash at bank	20,000

Drawings							No.310
Date		Details	Debit	Date		Details	Credit
June	30	Cash at bank	1,010

Sales revenue							No.400
Date		Details	Debit	Date		Details	Credit
				June	11	Accounts receivable	7,100
					12	Accounts receivable	2,600
					13	Accounts receivable	4,000
					14	Cash at bank	400
					23	Cash at bank	900
					26	Accounts receivable	6,500

Sales returns and allowances							No.410
Date		Details	Debit	Date		Details	Credit
June	24	Accounts receivable	400

Discount received							No.420
Date		Details	Debit	Date		Details	Credit
				June	8	Accounts payable	1,820

Cost of sales							No.500
Date		Details	Debit	Date		Details	Credit
June	11	Inventory	3,600	June	24	Inventory	300
	12	Inventory	2,000
	13	Inventory	1,800
	14	Inventory	180
	23	Inventory	380
	26	Inventory	2,500

Advertising expense							No.600
Date		Details	Debit	Date		Details	Credit
June	8	Cash at bank	1,400

Discount allowed							No.620
Date		Details	Debit	Date		Details	Credit
June	18	Accounts receivable	200

Electricity expense							No.630
Date		Details	Debit	Date		Details	Credit
June	30	Cash at bank	150

Postage and stationery expense							No.660
Date		Details	Debit	Date		Details	Credit
June	5	Cash at bank	350

Wages expense							No.690
Date		Details	Debit	Date		Details	Credit
June	30	Cash at bank	740
	30	PAYG withholding payable	60

Accounts receivable subsidiary ledger
Academy Diving School						Acct code: ADI
Date		Explanation		Debit	Credit	Balance
June	12	Invoice		2,600		2,600 Dr
	24	Adjustment note			400	2,200 Dr
	27	Receipt			2,200	0
Serious Fun						Acct code: SFU
Date		Explanation		Debit	Credit	Balance
June	13	Invoice		4,000		4,000 Dr
	18	Receipt			4,000	0
	26	Invoice		6,500		6,500 Dr
Surfng World						Acct code: SWO
Date		Explanation		Debit	Credit	Balance
June	11	Invoice		7,100		7,100 Dr
Accounts payable subsidiary ledger
Excitement Plus						Acct code: EPL
Date		Explanation		Debit	Credit	Balance
June	2	Invoice			20,000	20,000
	25	Payment		4,500		15,500
Surf Imports						Acct code: SIM
Date		Explanation		Debit	Credit	Balance
June	7	Invoice			18,200	18,200
	8	Payment		18,200		0
	27	Invoice			6,800	6,800

Prepare a trial balance as at 30 June. Schedules of accounts receivable and accounts payable will be provided.