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 $39,000. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $39,000 and computer equipment for the shop from Computer Wizards for $5,000. These were paid for with a loan of $42,000 from the bank and cheque for $2,000 from the business bank account. The bank loan is repayable over 4 years.
	2		Paid $4,920 for a 1-year insurance policy covering fire, theft, and public liability.
	2		Paid $1,040 to Local Newspapers for advertising for the shop for the month.
	5		Purchased inventory (skateboards and protective gear) from Excitement Plus for $27,000 on terms on net 30.
	7		Purchased surfboards and wetsuits from Surf Imports for $19,000 on terms of 10/10, n/30.
	8		Credit sale to Serious Fun of skateboards and protective gear for $5,300 (cost of sales $2,100). This customer was given terms of 5/10, n/30.
	8		Cash sale of a skateboard and protective gear for $540 (cost of sales $240).
	11		Cash purchase of postage stamps and stationery from Australia Post for $120.
	12		Credit sale to Surfing World of various inventory items for $7,990 (cost of sales $4,000). Terms net 30.
	12		Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $200.
	13		Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
	14		Paid Surf Imports the amount owing to them less the prompt payment discount.
	17		Credit sale to Academy Diving School of 15 wetsuits at a discounted price of $350 each on terms of net 15. Cost of sales $4,500.
	23		Paid Excitement Plus $4,300 of the amount owing to them.
	24		Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $350 each that was not the size they required. The cost of the wetsuit to us was $300 and it was put back into inventory.
	24		Purchased wetsuits from Surf Imports for $9,000 on terms of 10/10, n/30.
	25		Credit sale to Serious Fun of skateboards for $7,500 (cost of sales $3,600). Terms 5/10, n/30.
	27		Received and banked a cheque from Academy Diving School for the amount owing by them.
	30		A repayment of $1,100 was made on the bank loan.
	30		The owner cashed a cheque for $770 to pay wages to Scott Walker the sales assistant of $800 less PAYG Withholding of $30.

The end of month adjustments are below.

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 10% of the gross wages paid.
d.	Interest charged on the bank loan for the month was $160.

The transactions above have been journalised and posted. The statement or profit or loss for June is below.

Journalise end-of-year closing entries. (Note: Enter debit entries first, followed by credit entries in the general journal. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Leave blank any answer fields that do not require an answer. Enter accounts following the order of accounts given in the statement of profit or loss.)

QUESTION ABOVE WAS ALREADY ANSWERED BY CHEGG STUDY HELPER- ANSWER QUESTION BELOW - FILL IN [NO ANSWER] SECTIONS.

Post end-of-year closing entries and complete the closing process in the general ledger. (Note: Leave blank any answer fields that do not require an answer.)

Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20XX Revenue Sales revenue Sales revenue 26,580 Less: Sales returns and allowances 350 Net sales revenue 26,230 Less: Cost of sales 14,140 Gross profit 12,090 Other revenue: Discount received 1,900 13,990 Expenses Advertising expense 1,040 Depreciation expense 733 Discount allowed 265 Insurance expense 410 Interest expense 160 Postage and stationery expense 120 Superannuation exepnse 76 Wages expense 800 Total expenses 3,604 Net profit/(loss) $10,386 Details Post ref. Debit Credit Date 20xx June 130 Sales revenue 126,580 11.900 128,480 118,094 1350 2 114,140 11,040 1733 1265 Discount received Profit or loss summary (To close revenue accounts) 130 Profit or loss summary Sales returns and allowances Cost of sales TAdvertising expense Depreciation expense Discount allowed Insurance expense Interest expense Postage and stationery expense Superannuation expense Wages expense (To close expense accounts) 130 Profit or loss summary Capital (To close profit to capital account) 1410 1160 1201 176 1800 110,386 [10,386 No. 100 Cash at bank Date Debit Credit June Details 1 Capital 8 Sales revenue 13 Accounts receivable 27 Accounts receivable 39,000 June 540 5,035 4,900 Date Details 1 Shop equipment (cost) 2 Prepaid insurance 2 Advertising expense 11 Postage and stationery 14 Accounts payable 23 Accounts payable 30 Bank loan 30 Wages expense [no answer) (no answer) 2,000 4,920 1,040 120 17,100 [no answer] [no answer] [no answer) (no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] 4,300 1,100 770 $ $ July [no answer) (no answer] July [no answer) (no answer] No. 110 Debit Date Credit Accounts receivable Date Details June 8 Sales revenue 12 Sales revenue 17 Sales revenue 25 Sales revenue 5,300 June 7,990 5,250 7,500 Details 13 Cash at bank 13 Discount allowed 24 Sales returns and allowances 27 Cash at bank 5,035 265 350 4,900 [no answer) [no answer] $ $ July [no answer] [no answer] July [no answer) [no answer] No. 120 Debit Date Credit Inventory Date Details June 5 Accounts payable 7 Accounts payable 24 Cost of sales 24 Accounts payable [no answer) (no answer] [no answer] [no answer] [no answer) (no answer] 27,000 June 19,000 300 9,000 Details 8 Cost of sales 8 Cost of sales 12 Accounts payable 12 Cost of sales 17 Cost of sales 240 2,100 200 4,000 4,500 25 Cost of sales 3,600 [no answer] [no answer] $ $ July [no answer) [no answer] July [no answer] (no answer] No. 130 Debit Date Credit Prepaid insurance Date Details June 2 Cash at bank [no answer] (no answer] Details 30 Insurance expense 4,920 June 410 [no answer) [no answer] $ $ July [no answer] [no answer] July [no answer] [no answer] No. 171 Debit Date Details Credit Shop equipment (cost) Date Details June 1 Bank loan 1 Cash at bank 42,000 2,000 $44,000 No. 172 Accumulated depreciation - shop equipment Date Details Debit Credit Date June Details 30 Depreciation expense 733 No. 200 Debit Credit Accounts payable Date Details June 12 Inventory 14 Cash at bank 14 Discount received 23 Cash at bank 200 June 17,100 1,900 4,300 Date Details 5 Inventory 7 Inventory 24 Inventory [no answer) (no answer] 27,000 19,000 9,000 [no answer) (no answer] $ July [no answer) (no answer] July [no answer] (no answer] No. 210 PAYG withholding payable Date Details Debit Credit Date June Details 30 Wages expense 30 No. 220 Superannuation payable Date Details Debit Date Credit Details 30 Superannuation expense June 76 No. 230 Date Debit Date Credit Bank loan Details June 30 Cash at bank [no answer] [no answer] 1,100 June Details 1 Shop equipment (cost) 30 Interest expense 42,000 160 $ $ July [no answer] (no answer] July [no answer] (no answer] No. 300 Debit Date Credit Capital Date Details June [no answer) (no answer] [no answer] [no answer] Details 1 Cash at bank June 39,000 [no answer] (no answer] No. 310 Drawings Date Details Debit Date Details Credit No. 320 Debit Credit Profit or loss summary Date Details June [no answer] (no answer] [no answer] [no answer) Date Details June [no answer) (no answer] [no answer] (no answer] No. 400 Debit Date Credit Details 8 Cash at bank June 540 5,300 Sales revenue Date Details June [no answer] [no answer] [no answer] [no answer) [no answer) [no answer] [no answer] [no answer] [no answer] [no answer] 7,990 8 Accounts receivable 12 Accounts receivable 17 Accounts receivable 25 Accounts receivable 5,250 7,500 $ No. 410 Sales returns and allowances Date Details June 24 Accounts receivable Debit Date Details Credit 350 June (no answer) (no answer) No. 420 Discount received Date Details June fno answer) [no answer] Debit Credit Date June Details 14 Accounts payable 1,900 No. 500 Debit Date Details Credit Cost of sales Date Details June 8 Inventory 8 Inventory 24 Inventory 300 240 June 2,100 4,000 12 Inventory 17 Inventory 25 Inventory 4,500 [no answer) (no answer) [no answer] [no answer] [no answer] [no answer] [no answer] [no answer) 3,600 $ $ No. 600 Advertising expense Date Details June 2 Cash at bank Debit Date Details Credit 1,040 June [no answer] (no answer] No. 610 Depreciation expense Date Details June 30 Accumulated depreciation - shop equipment Debit Credit Date Details 733 June [no answer] (no answer) No. 620 Discount allowed Date Details June 13 Accounts receivable Debit Date Details Credit 265 June [no answer) (no answer] No. 630 Electricity expense Date Details Debit Date Details Credit No. 640 Insurance expense Date Details June 30 Prepaid insurance Debit Date Details Credit 410 June (no answer] (no answer] No. 650 Interest expense Date Details June 30 Bank loan Debit Date Credit Details 160 June [no answer] (no answer] No. 660 Postage and stationery expense Date Details June 11 Cash at bank Debit Credit Date Details 120 June [no answer) (no answer] No. 670 Superannuation expense Date Details June 30 Superannuation payable Debit Date Details Credit 76 June [no answer) (no answer] No. 680 Telephone expense Date Details Debit Date Details Credit No. 690 Debit Credit Wages expense Date Details June 30 Cash at bank 30 PAYG withholding payable Date Details 770 June [no answer] (no answer] 30 [no answer] [no answer] $