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 $30,700. This is capital provided by him.

1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $29,600 and computer equipment for the shop from Computer Wizards for $3,700. These were paid for with a loan of $29,600 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 $24,000 on terms on net 30. 5 Cash purchase of stationery from Officeworks for $350.

7 Purchased surfboards and wetsuits from Surf Imports for $19,800 on terms of 10/10, n/30.

9 Paid Surf Imports the amount owing to them less the prompt payment discount.

11 Paid $4,000 for a 1-year insurance policy covering fire, theft, and public liability.

12 Paid $1,510 to Local Newspapers for advertising for the shop for the month.

13 Credit sale to Serious Fun of skateboards and protective gear for $4,200 (cost of sales $2,400). This customer was given terms of 5/10, n/30.

14 Credit sale to Surfing World of various inventory items for $7,400 (cost of sales $4,200). Terms net 30.

17 Credit sale to Academy Diving School of 20 wetsuits at a discounted price of $275 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 $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 $275 each that was not the size they required. The cost of the wetsuits to us was $400 and they were put back into inventory.

20 Cash sale of inventory to the value of $1,100 (cost of sales $500).

23 Paid Excitement Plus $2,800 of the amount owing to them.

25 Credit sale to Serious Fun of skateboards for $7,300 (cost of sales $3,780). Terms 5/10, n/30.

26 Received and banked a cheque for $4,700 from Surfing World in part payment of the amount owing by them.

27 Purchased wetsuits from Surf Imports for $8,500 on terms of 10/10, n/30. 30 Paid Telstra $160 for telephone expenses.

30 The owner cashed a cheque for $840 to pay wages to Scott Walker the sales assistant of $890 less PAYG Withholding of $50. The entries have been journalised below.

General journal

Date Description Post ref. Debit Credit 20XX

June 1 Cash at bank 30,700 Capital 30,700 (Owner's capital contribution)

1 Shop equipment (cost) 33,300 Bank loan 29,600 Cash at bank 3,700 (Display stands, shelving and computer for shop; loan repayable over 3 years)

2 Inventory 24,000 Accounts payable 24,000 (Inventory purchase on terms of net 30)

5 Postage and stationery expense 350 Cash at bank 350 (Cash purchase of stationery)

7 Inventory 19,800 Accounts payable 19,800 (Credit purchase on terms of 10/10, n/30)

9 Accounts payable 19,800 Cash at bank 17,820 Discount received 1,980 (Supplier paid less prompt payment discount)

11 Prepaid insurance 4,000 Cash at bank 4,000 (1 year insurance policy)

12 Advertising expense 1,510 Cash at bank 1,510 (Advertising for the month)

13 Accounts receivable 4,200 Sales revenue 4,200 (Credit sale on terms of 5/10, n/30)

13 Cost of sales 2,400 Inventory 2,400 (Adjust inventory)

14 Accounts receivable 7,400 Sales revenue 7,400 (Credit sale on terms of net 30)

14 Cost of sales 4,200 Inventory 4,200 (Adjust inventory)

17 Accounts receivable 5,500 Sales revenue 5,500 (Credit sale on terms of net 15)

17 Cost of sales 2,800 Inventory 2,800 (Adjust inventory)

18 Accounts payable 180 Inventory 180 (Faulty protective gear returned to supplier)

18 Cash at bank 3,990 Discount allowed 210 Accounts receivable 4,200 (Payment received less prompt payment discount)

19 Sales returns and allowances 550 Accounts receivable 550 (Wetsuits returned by customer put back into inventory)

19 Inventory 400 Cost of sales 400 (Adjust inventory)

20 Cash at bank 1,100 Sales revenue 1,100 (Cash sale)

20 Cost of sales 500 Inventory 500 (Adjust inventory)

23 Accounts payable 2,800 Cash at bank 2,800 (Part payment of amount owing)

25 Accounts receivable 7,300 Sales revenue 7,300 (Credit sale on terms of 5/10, n/30)

25 Cost of sales 3,780 Inventory 3,780 (Adjust inventory)

26 Cash at bank 4,700 Accounts receivable 4,700 (Payment received from customer)

27 Inventory 8,500 Accounts payable 8,500 (Credit purchase on terms of 10/10, n/30)

30 Telephone expense 160 Cash at bank 160 (Pay telephone expense)

30 Wages expense 890 Cash at bank 840 PAYG withholding payable 50 (Wages paid to Scott Walker)

Post to the general ledger accounts.

The accounts receivable and accounts payable subsidiary ledgers are provided for information only. Accounts receivable subsidiary ledger Academy Diving School Acct code: ADI Date Explanation Debit Credit Balance June 17 Invoice 5,500 5,500 Dr 19 Adjustment note 550 4,950 Dr Serious Fun Acct code: SFU Date Explanation Debit Credit Balance June 13 Invoice 4,200 4,200 Dr 18 Receipt 4,200 0 25 Invoice 7,300 7,300 Dr Surfng World Acct code: SWO Date Explanation Debit Credit Balance June 14 Invoice 7,400 7,400 Dr 26 Receipt 4,700 2,700 Dr Accounts payable subsidiary ledger Excitement Plus Acct code: EPL Date Explanation Debit Credit Balance June 2 Invoice 24,000 24,000 18 Adjustment note 180 23,820 23 Payment 2,800 21,020 Surf Imports Acct code: SIM Date Explanation Debit Credit Balance June 7 Invoice 19,800 19,800 9 Payment 19,800 0 27 Invoice 8,500 8,500

Prepare the cash account and ledger account to close each balance.

(Note: For any ONE specific transaction containing multiple entries, enter accounts in descending amounts. For example, if a transaction has three accounts, such as two debits and one credit or two credits and one debit from the general journal, one of the t-ledgers will have two accounts. In this instance, please post the two accounts in the general ledger in descending amount order to indicate the accounts involved in that transaction. Leave blank any answer fields that do not require an answer.)

No. 100 Cash at bank Date Details June 1 Debit Date Details Credit June No. 110 Accounts receivable Date Details June Debit Date Details Credit June No. 120 Inventory Date Details Debit Date Details Credit June June