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 $29,000 This is capital provided by him 1 Purchased display stands, shelving etc (shop equipment) from Shop Displays Pty Ltd for $27,000 and computer equipment for the shop from Computer Wizards for $3,500 These were paid for with a loan of $27,000 from the bank and cheque for $3,500 from the business bank account The bank loan is repayable over 3 years 2 Purchased inventory (skateboards and protective gear) from Excitement Plus for $24,000 on terms on net 30 5 Cash purchase of stationery from Officeworks for $300 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 $2,700 for a 1 year insurance policy covering fire, theft, and public liability 12 Paid $1,500 to Local Newspapers for advertising for the shop for the month 13 Credit sale to Serious Fun of skateboards and protective gear for $4,000 (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 $7,000 (cost of sales $3,500) Terms net 30 17 Credit sale to Academy Diving School of 10 wetsuits at a discounted price of $270 each on terms of net 15 Cost of sales $2,500 18 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $180 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 2 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 $450) 23 Paid Excitement Plus $2,000 of the amount owing to them 25 Credit sale to Serious Fun of skateboards for $7,000 (cost of sales $3,700) Terms 5 10, n 30 26 Received and banked a cheque for $4,500 from Surfing World in part payment of the amount owing by them 27 Purchased wetsuits from Surf Imports for $7,500 on terms of 10 10, n 30 30 Paid Telstra $150 for telephone expenses 30 The owner cashed a cheque for $800 to pay wages to Scott Walker the sales assistant of $850 less PAYG Withholding of $50 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 $113 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 10,150 110 Accounts receivable 11,660 120 Inventory 38,520 130 Prepaid insurance 2,475 171 Shop equipment (cost) 30,500 172 Accumulated depreciation shop equipment 381 200 Accounts payable 29,320 210 PAYG withholding payable 50 220 Superannuation payable 68 230 Bank loan 27,113 300 Capital 29,000 400 Sales revenue 21,600 410 Sales returns and allowances 540 420 Discount received 1,900 500 Cost of sales 11,800 600 Advertising expense 1,500 610 Depreciation expense 381 620 Discount allowed 200 640 Insurance expense 225 650 Interest expense 113 660 Postage and stationery expense 300 670 Superannuation expense 68 680 Telephone expense 150 690 Wages expense 850 $109,432 $109,432 Prepare the statement of profit or loss for June (Enter accounts in ascending account order ) Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20xx Revenue Sales revenue Less Net sales revenue Less Gross profit Other revenue LU JULUU Expenses Total expenses Net profit (loss)

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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 the business

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 $29,000. This is capital provided by him.
	1	Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $27,000 and computer equipment for the shop from Computer Wizards for $3,500. These were paid for with a loan of $27,000 from the bank and cheque for $3,500 from the business bank account. The bank loan is repayable over 3 years.
	2	Purchased inventory (skateboards and protective gear) from Excitement Plus for $24,000 on terms on net 30.
	5	Cash purchase of stationery from Officeworks for $300.
	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 $2,700 for a 1-year insurance policy covering fire, theft, and public liability.
	12	Paid $1,500 to Local Newspapers for advertising for the shop for the month.
	13	Credit sale to Serious Fun of skateboards and protective gear for $4,000 (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 $7,000 (cost of sales $3,500). Terms net 30.
	17	Credit sale to Academy Diving School of 10 wetsuits at a discounted price of $270 each on terms of net 15. Cost of sales $2,500.
	18	Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $180.
	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 2 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 $450).
	23	Paid Excitement Plus $2,000 of the amount owing to them.
	25	Credit sale to Serious Fun of skateboards for $7,000 (cost of sales $3,700). Terms 5/10, n/30.
	26	Received and banked a cheque for $4,500 from Surfing World in part payment of the amount owing by them.
	27	Purchased wetsuits from Surf Imports for $7,500 on terms of 10/10, n/30.
	30	Paid Telstra $150 for telephone expenses.
	30	The owner cashed a cheque for $800 to pay wages to Scott Walker the sales assistant of $850 less PAYG Withholding of $50.

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 $113.

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	10,150
110	Accounts receivable	11,660
120	Inventory	38,520
130	Prepaid insurance	2,475
171	Shop equipment (cost)	30,500
172	Accumulated depreciation - shop equipment		381
200	Accounts payable		29,320
210	PAYG withholding payable		50
220	Superannuation payable		68
230	Bank loan		27,113
300	Capital		29,000
400	Sales revenue		21,600
410	Sales returns and allowances	540
420	Discount received		1,900
500	Cost of sales	11,800
600	Advertising expense	1,500
610	Depreciation expense	381
620	Discount allowed	200
640	Insurance expense	225
650	Interest expense	113
660	Postage and stationery expense	300
670	Superannuation expense	68
680	Telephone expense	150
690	Wages expense	850
		$109,432	$109,432

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Prepare the statement of profit or loss for June. (Enter accounts in ascending account order.) Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20xx Revenue Sales revenue Less: Net sales revenue Less: Gross profit Other revenue: LU JULUU Expenses Total expenses Net profit / (loss)