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 $30,400. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $28,700 and computer equipment for the shop from Computer Wizards for $3,700. These were paid for with a loan of $28,700 from the bank and cheque for $3,700 from the business bank account. The bank loan is repayable over 3 years.
	2		Purchased inventory (skateboards and protective gear) from Excitement Plus for $25,300 on terms on net 30.
	5		Cash purchase of stationery from Officeworks for $310.
	7		Purchased surfboards and wetsuits from Surf Imports for $19,000 on terms of 10/10, n/30.
	9		Paid Surf Imports the amount owing to them less the prompt payment discount.
	11		Paid $3,060 for a 1-year insurance policy covering fire, theft, and public liability.
	12		Paid $1,520 to Local Newspapers for advertising for the shop for the month.
	13		Credit sale to Serious Fun of skateboards and protective gear for $4,100 (cost of sales $2,000). This customer was given terms of 5/10, n/30.
	14		Credit sale to Surfing World of various inventory items for $7,100 (cost of sales $4,400). Terms net 30.
	17		Credit sale to Academy Diving School of 20 wetsuits at a discounted price of $270 each on terms of net 15. Cost of sales $2,800.
	18		Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $200.
	18		Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
	19		Issued an adjustment note (credit note) to Academy Diving School for 3 wetsuits at $270 each that was not the size they required. The cost of the wetsuits to us was $350 and they were put back into inventory.
	20		Cash sale of inventory to the value of $900 (cost of sales $500).
	23		Paid Excitement Plus $2,500 of the amount owing to them.
	25		Credit sale to Serious Fun of skateboards for $7,500 (cost of sales $3,800). Terms 5/10, n/30.
	26		Received and banked a cheque for $5,400 from Surfing World in part payment of the amount owing by them.
	27		Purchased wetsuits from Surf Imports for $7,900 on terms of 10/10, n/30.
	30		Paid Telstra $150 for telephone expenses.
	30		The owner cashed a cheque for $860 to pay wages to Scott Walker the sales assistant of $890 less PAYG Withholding of $30.

The end of month adjustments are below.

a.	Depreciation on shop equipment for the month is 15% p.a. prime cost (straight line).
b.	One-twelfth of the insurance expired.
c.	Superannuation payable for the month is 8% of the gross wages paid.
d.	Interest charged on the bank loan for the month was $120.

The transactions above have been journalised and posted. The adjusted trial balance is below.

Skate 'n' Surf Adjusted trial balance as at 30 June 20XX
Account no.	Account	Debit		Credit
100	Cash at bank	11,395
110	Accounts receivable	13,790
120	Inventory	38,850
130	Prepaid insurance	2,805
171	Shop equipment (cost)	32,400
172	Accumulated depreciation - shop equipment			405
200	Accounts payable			30,500
210	PAYG withholding payable			30
220	Superannuation payable			71
230	Bank loan			28,820
300	Capital			30,400
400	Sales revenue			25,000
410	Sales returns and allowances	810
420	Discount received			1,900
500	Cost of sales	13,150
600	Advertising expense	1,520
610	Depreciation expense	405
620	Discount allowed	205
640	Insurance expense	255
650	Interest expense	120
660	Postage and stationery expense	310
670	Superannuation expense	71
680	Telephone expense	150
690	Wages expense	890
		$117,126		$117,126 Prepare the statement of financial position (balance sheet) as at 30 June. Show all accounts with balances as there are no notes to the financial statements.