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 $21,000. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $26,400 and computer equipment for the shop from Computer Wizards for $4,700. These were paid for with a loan of $25,000 from the bank and cheque for $6,100 from the business bank account. The bank loan is repayable over 4 years.
	1		Paid $4,000 for a 1-year insurance policy covering fire, theft, and public liability.
	2		Purchased inventory (skateboards and protective gear) from Excitement Plus for $21,500 on terms on net 30.
	5		Cash purchase of postage stamps and stationery from Australia Post for $400.
	7		Purchased surfboards and wetsuits from Surf Imports for $18,240 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 $7,150 (cost of sales $3,690). Terms net 30.
	12		Credit sale to Academy Diving School of 15 wetsuits at a discounted price of $200 each on terms of net 15. Cost of sales $2,500.
	13		Credit sale to Serious Fun of skateboards and protective gear for $4,000 (cost of sales $2,300). This customer was given terms of 5/10, n/30.
	14		Cash sale of a skateboard and protective gear for $440 (cost of sales $240).
	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 $910 (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 $330 and they were put back into inventory.
	25		Paid Excitement Plus $4,600 of the amount owing to them.
	26		Credit sale to Serious Fun of skateboards for $6,900 (cost of sales $2,800). Terms 5/10, n/30.
	27		Purchased wetsuits from Surf Imports for $6,900 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 $180 for electricity expenses.
	30		The owner cashed a cheque for $1,800 to pay wages to Scott Walker the sales assistant of $870 less PAYG Withholding of $60, and $990 drawings for himself.

3

Cash at bank Date Details June 1 Capital 14 Sales revenue 18 Accounts receivable 23 Sales revenue 27 Accounts receivable Debit Date Details 21,000 June 1 Shop equipment (cost) 440 1 Prepaid insurance 3,800 5 Postage and stationery expense 910 8 Advertising expense 2,600 8 Accounts payable 25 Accounts payable 30 Electricity expense 30 Wages expense 30 Drawings No.100 Credit 6,100 4,000 400 1,400 16,416 4,600 180 810 990 Accounts receivable Date Details June 11 Sales revenue 12 Sales revenue 13 Sales revenue 26 Sales revenue Debit Date Details 7,150 June 18 Cash at bank 3,000 18 Discount allowed 4,000 24 Sales returns and allowances 6,900 27 Cash at bank No.110 Credit 3,800 200 400 2,600 Inventory Date Details June 2 Accounts payable 7 Accounts payable 24 Cost of sales 27 Accounts payable Debit Date Details 21,500 June 11 Cost of sales 18,240 12 Cost of sales 330 13 Cost of sales 6,900 14 Cost of sales 23 Cost of sales 26 Cost of sales No.120 Credit 3,690 2,500 2,300 240 380 2,800 Prepaid insurance Date Details June 1 Cash at bank No.130 Credit Date Details Debit 4,000 No.171 Credit Date Details Shop equipment (cost) Date Details June 1 Bank loan June 1 Cash at bank Debit 25,000 6,100 Details Accounts payable Date Details June 8 Cash at bank 8 Discount received 25 Cash at bank Debit Date 16,416 June 2 Inventory 1,824 7 Inventory 4,600 27 Inventory No.200 Credit 21,500 18,240 6,900 No.210 PAYG withholding payable Date Details Debit Credit Date Details June 30 Wages expense 60 Bank loan Date Details Debit Date Details June 1 Shop equipment (cost) No.230 Credit 25,000 Capital Date Details Debit Date Details June 1 Cash at bank No.300 Credit 21,000 Drawings Date Details June 30 Cash at bank No.310 Credit Debit Date Details 990 Sales revenue Date Details Debit Date Details June 11 Accounts receivable 12 Accounts receivable 13 Accounts receivable 14 Cash at bank 23 Cash at bank 26 Accounts receivable No.400 Credit 7,150 3,000 4,000 440 910 6,900 Sales returns and allowances Date Details June 24 Accounts receivable No.410 Credit Debit Date Details 400 No.420 Discount received Date Details Debit Date Details June 8 Accounts payable Credit 1,824 Details Details No.500 Credit 330 Cost of sales Date June 11 Inventory 12 Inventory 13 Inventory 14 Inventory 23 Inventory 26 Inventory Debit Date 3,690 June 24 Inventory 2,500 2,300 240 380 2,800 Advertising expense Date Details June 8 Cash at bank No.600 Credit Date Details Debit 1,400 Discount allowed Date Details June 18 Accounts receivable No.620 Credit Debit Date Details 200 Electricity expense Date Details June 30 Cash at bank No.630 Credit Debit Date Details 180 Postage and stationery expense Date Details June 5 Cash at bank No.660 Credit Debit Date Details 400 No.690 Credit Debit Date Details Wages expense Date Details June 30 Cash at bank 30 PAYG withholding payable 810 60 Accounts receivable subsidiary ledger Credit Debit 3,000 400 2,600 Academy Diving School Date Explanation June 12 Invoice 24 Adjustment note 27 Receipt Serious Fun Date Explanation June 13 Invoice 18 Receipt 26 Invoice Surfng World Date Explanation June 11 Invoice Credit Debit 4,000 Acct code: ADI Balance 3,000 Dr 2,600 Dr 0 Acct code: SFU Balance 4,000 Dr 0 6,900 Dr Acct code: SWO Balance 7,150 Dr 4,000 6,900 Debit Credit 7,150 Accounts payable subsidiary ledger Debit Credit 21,500 4,600 Excitement Plus Date Explanation June 2 Invoice 25 Payment Surf Imports Date Explanation June 7 Invoice 8 Payment 27 Invoice Acct code: EPL Balance 21,500 16,900 Acct code: SIM Balance 18,240 Debit Credit 18,240 18,240 0 6,900 6,900 Prepare a trial balance as at 30 June. Schedules of accounts receivable and accounts payable will be provided. (Note: Enter accounts in ascending account number order. Leave blank any answer fields that do not require an answer.) Skate 'n' Surf Trial balance as at 30 June 20XX Debit Account no. Account Credit MAHAKAMANIA