Transactions June 1 The owner opened a bank account for the business with a deposit of $30,100. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $27,900 and computer equipment for the shop from Computer Wizards for $4,100. These were paid for with a loan of $27,900 from the bank and cheque for $4,100 from the business bank account. The bank loan is repayable over 3 years. 2 Purchased inventory (skateboards and protective gear) from Excitement plus for $25,400 on terms on net 30. 5 Cash purchase of stationery from Officeworks for $300. 7 Purchased surfboards and wetsuits from Surf Imports for $20,700 on terms of 10/10, n/30. 9 Paid Surf Imports the amount owing to them less the prompt payment discount. 11 Paid $3,780 for a 1-year insurance policy covering fire, theft, and public liability. 12 Paid $1,520 to Local Newspapers for advertising for the shop for the month. 13 Credit sale to Serious Fun of skateboards and protective gear for $5,500 (cost of sales $3,000). This customer was given terms of 5/10, n/30. 14 Credit sale to Surfing World of various inventory items for $7,100 (cost of sales $4,100). Terms net 30. 17 Credit sale to Academy Diving School of 10 wetsuits at a discounted price of $280 each on terms of net 15. Cost of sales $3,200. 18 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $220. 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 $280 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 $900 (cost of sales $550). 23 Paid Excitement Plus $2,200 of the amount owing to them. 25 Credit sale to Serious Fun of skateboards for $7,400 (cost of sales $3,710). Terms 5/10, n/30. 26 Received and banked a cheque for $5,300 from Surfing World in part payment of the amount owing by them. 27 Purchased wetsuits from Surf Imports for $7,600 on terms of 10/10, n/30. 30 Paid Telstra $170 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 end of month adjustments are below. a. Depreciation on shop equipment for the month is 25% 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 $116. The transactions above have been journalised and posted. The adjusted trial balance is below. Skate 'r' Surf Adjusted trial balance as at 30 June 20xx Account no. Account Debit Credit 100 Cash at bank 9,985 110 Accounts receivable 11,440 120 Inventory 39,320 130 Prepaid insurance 3,465 171 Shop equipment (cost) 32,000 172 Accumulated depreciation - shop equipment 667 200 Accounts payable 30,580 210 PAYG withholding payable 50 220 Superannuation payable 85 230 Bank loan 28,016 300 Capital 30,100 400 Sales revenue 23,700 410 Sales returns and allowances 560 420 Discount received 2,070 500 Cost of sales 14,160 600 Advertising expense 1,520 610 Depreciation expense 667 620 Discount allowed 275 640 Insurance expense 315 650 Interest expense 116 660 Postage and stationery expense 300 670 Superannuation expense 85 680 Telephone expense 170 690 Wages expense 890 $115,268 $115,268 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: Expenses Total expenses Net profit / (loss)