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 and the accounts receivable or accounts payable subsidiary ledgers, where separate accounts are maintained for each customer or supplier. 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 $25,000. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $32,840 and computer equipment for the shop from Computer Wizards for $4,000. These were paid for with a loan of $30,840 from the bank and cheque for $6,000 from the business bank account. The bank loan is repayable over 3 years.
	1		Paid $4,920 for a 1-year insurance policy covering fire, theft, and public liability.
	2		Purchased inventory (skateboards and protective gear) from Excitement Plus for $17,200 on terms on net 30.
	5		Paid $1,400 to Local Newspapers for advertising for the shop for the month.
	6		Cash sale of a skateboard and protective gear for $410 (cost of sales $155).
	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 $130.
	9		Credit sale to Serious Fun of skateboards and protective gear for $4,400 (cost of sales $1,770). 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 $6,790 (cost of sales $3,250). Terms net 30.
	13		Cash purchase of stationery from Officeworks for $340.
	14		Credit sale to Academy Diving School of 15 wetsuits at a discounted price of $240 each on terms of net 15. Cost of sales $2,210.
	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 $390).
	20		Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $240 each that was not the size they required. The cost of the wetsuit to us was $130 and it was put back into inventory.
	24		Paid Excitement Plus $5,400 of the amount owing to them.
	25		Credit sale to Serious Fun of skateboards for $6,300 (cost of sales $2,700). Terms 5/10, n/30.
	26		Purchased wetsuits from Surf Imports for $5,800 on terms of 10/10, n/30.
	27		Received and banked a cheque from Academy Diving School for the amount owing by them.
	30		The owner cashed a cheque for $1,780 to pay wages to Scott Walker the sales assistant of $830 less PAYG Withholding of $50, and $1,000 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 $129.

Date	Description	Post ref.	Debit	Credit
20XX
June 30	Depreciation expense		614
	Accumulated depreciation - shop equipment			614
	(Depreciation for the month)
30	Insurance expense		410
	Prepaid insurance			410
	(Amount of prepaid insurance expired for June)
30	Superannuation expense		75
	Superannuation payable			75
	(Superannuation payable for June)
30	Interest expense		129
	Bank loan			129
	(Interest charged to bank loan for June)

Post the above adjusting entries to the general ledger below.