SkatesOn began operations on 1 June, buying and selling skateboards, roller blades, scooters and the protective gear that is essential when pursuing these types of sports. The structure of the business is that of a sole trader, with the owner being Jason King. Jason 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 SkatesOn 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		Wages payable
220		PAYG withholding 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		Depreciation expense
610		Discount allowed
620		Insurance expense
630		Interest expense
640		Rent expense
650		Wages expense

Transactions

June	1		The owner opened a bank account for the business with a deposit of $24,200. This is capital provided by him.
	1		Purchased shop equipment (computer, cash register, shelving etc.) from Shop Outfitters Pty Ltd for $47,400. This was paid for with a loan of $43,790 from the bank and cheque for $3,610 from the business bank account. The bank loan is repayable over 4 years.
	2		Purchased inventory (skateboards, roller blades, helmets and other protective gear) from Daintree Importers for $18,404 on terms on net 30.
	2		Paid $3,288 for a 1-year insurance policy covering fire, theft, and public liability.
	3		Paid rent of $1,980 for the shop for June.
	6		Cash sale of a skateboard and protective equipment for $464 (cost of sales $191).
	7		Returned some protective gear to Daintree Importers that was faulty and received an adjustment note (credit note) from them for $163.
	8		Credit sale to Serious Fun of skateboards and roller blades for $6,560 (cost of sales $3,011). This customer was given terms of 5/10, n/30.
	10		Purchased scooters from Scoot Imports for $9,660 on terms of 10/10, n/30.
	14		Paid Daintree Importers $5,200 of the amount owing to them.
	15		Credit sale to Action World of various inventory items for $6,435 (cost of sales $2,785). Terms net 30.
	16		Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
	17		Paid Scoot Imports the amount owing to them less the prompt payment discount.
	20		Credit sale to Toys Plus of 33 scooters at a discounted price of $423 each on terms of net 15. Cost of sales $5,580.
	21		Cash sale of inventory to the value of $721 (cost of sales $321).
	22		Issued an adjustment note (credit note) to Action World for 5 helmets at $91 each that were not the style they prefer to sell. The cost of the helmets to us was $37 each and they were put back into inventory.
	24		Paid wages to James Paget the sales assistant of $530 less PAYG Withholding of $42 for the five days he has been employed. In future he will be paid fortnightly.
	27		The owner withdrew $1,020 cash from the business bank account for his own personal use.
	28		Purchased scooters from Scoot Imports for $11,310 on terms of 10/10, n/30.
	29		Received and banked a cheque from Toys Plus for the amount owing by them.
	30		Credit sale to Serious Fun of scooters for $4,850 (cost of sales $2,070). Terms 5/10, n/30.
	30		A repayment of $930 was made on the bank loan.

The June transactions above have been journalised and posted.

Cash at bank							No. 100
Date		Details	Debit	Date		Details	Credit
June	1	Capital	24,200	June	1	Shop equipment (cost)	3,610
	6	Sales revenue	464		2	Prepaid insurance	3,288
	16	Accounts receivable	6,232		3	Rent expense	1,980
	21	Sales revenue	721		14	Accounts payable	5,200
	29	Accounts receivable	13,959		17	Accounts payable	8,694
					24	Wages expense	488
					27	Drawings	1,020
					30	Bank loan	930

Accounts receivable							No. 110
Date		Details	Debit	Date		Details	Credit
June	8	Sales revenue	6,560	June	16	Cash at bank	6,232
	15	Sales revenue	6,435		16	Discount allowed	328
	20	Sales revenue	13,959		22	Sales returns and allowances	455
	30	Sales revenue	4,850		29	Cash at bank	13,959

Inventory							No. 120
Date		Details	Debit	Date		Details	Credit
June	2	Accounts payable	18,404	June	6	Cost of sales	191
	10	Accounts payable	9,660		7	Accounts payable	163
	22	Cost of sales	185		8	Cost of sales	3,011
	28	Accounts payable	11,310		15	Cost of sales	2,785
					20	Cost of sales	5,580
					21	Cost of sales	321
					30	Cost of sales	2,070

Prepaid insurance							No. 130
Date		Details	Debit	Date		Details	Credit
June	2	Cash at bank	3,288	June

Shop equipment (cost)							No. 171
Date		Details	Debit	Date		Details	Credit
June	1	Bank loan	43,790	June
	1	Cash at bank	3,610

Accounts payable							No. 200
Date		Details	Debit	Date		Details	Credit
June	7	Inventory	163	June	2	Inventory	18,404
	14	Cash at bank	5,200		10	Inventory	9,660
	17	Cash at bank	8,694		28	Inventory	11,310
	17	Discount received	966

PAYG withholding payable							No. 220
Date		Details	Debit	Date		Details	Credit
June				June	24	Wages expense	42

Bank loan							No. 230
Date		Details	Debit	Date		Details	Credit
June	30	Cash at bank	930	June	1	Shop equipment (cost)	43,790

Capital							No. 300
Date		Details	Debit	Date		Details	Credit
June				June	1	Cash at bank	24,200

Drawings							No. 310
Date		Details	Debit	Date		Details	Credit
June	27	Cash at bank	1,020	June

Sales revenue							No. 400
Date		Details	Debit	Date		Details	Credit
June				June	6	Cash at bank	464
					8	Accounts receivable	6,560
					15	Accounts receivable	6,435
					20	Accounts receivable	13,959
					21	Cash at bank	721
					30	Accounts receivable	4,850

Sales returns and allowances							No. 410
Date		Details	Debit	Date		Details	Credit
June	22	Accounts receivable	455	June

Discount received							No. 420
Date		Details	Debit	Date		Details	Credit
June				June	17	Accounts payable	966

Cost of sales							No. 500
Date		Details	Debit	Date		Details	Credit
June	6	Inventory	191	June	22	Inventory	185
	8	Inventory	3,011
	15	Inventory	2,785
	20	Inventory	5,580
	21	Inventory	321
	30	Inventory	2,070

Discount allowed							No. 610
Date		Details	Debit	Date		Details	Credit
June	16	Accounts receivable	328	June

Rent expense							No. 640
Date		Details	Debit	Date		Details	Credit
June	3	Cash at bank	1,980	June

Wages expense							No. 650
Date		Details	Debit	Date		Details	Credit
June	24	Cash at bank	488	June
	24	PAYG withholding payable	42

Prepare a trial balance as at 30 June and schedules of accounts receivable and accounts payable. (Note: Enter accounts in ascending account number order. Leave blank any answer fields that do not require an answer.)