Question
Transactions June 1 The owner opened a bank account for the business with a deposit of $20,000. This is capital provided by him. 1 Purchased
Transactions | |||
June | 1 | The owner opened a bank account for the business with a deposit of $20,000. This is capital provided by him. | |
1 | Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $26,100 and computer equipment for the shop from Computer Wizards for $4,800. These were paid for with a loan of $26,000 from the bank and cheque for $4,900 from the business bank account. The bank loan is repayable over 4 years. | ||
1 | Paid $3,920 for a 1-year insurance policy covering fire, theft, and public liability. | ||
2 | Purchased inventory (skateboards and protective gear) from Excitement Plus for $21,100 on terms on net 30. | ||
5 | Cash purchase of postage stamps and stationery from Australia Post for $350. | ||
7 | Purchased surfboards and wetsuits from Surf Imports for $18,200 on terms of 10/10, n/30. | ||
8 | Paid $1,470 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 $7,110 (cost of sales $3,650). Terms net 30. | ||
12 | Credit sale to Academy Diving School of 17 wetsuits at a discounted price of $260 each on terms of net 15. Cost of sales $2,300. | ||
13 | Credit sale to Serious Fun of skateboards and protective gear for $4,400 (cost of sales $2,400). This customer was given terms of 5/10, n/30. | ||
14 | Cash sale of a skateboard and protective gear for $500 (cost of sales $200). | ||
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 $1,000 (cost of sales $400). | ||
24 | Issued an adjustment note (credit note) to Academy Diving School for 2 wetsuits at $260 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 $5,400 of the amount owing to them. | ||
26 | Credit sale to Serious Fun of skateboards for $7,400 (cost of sales $2,600). Terms 5/10, n/30. | ||
27 | Purchased wetsuits from Surf Imports for $7,600 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 $210 for electricity expenses. | ||
30 | The owner cashed a cheque for $1,850 to pay wages to Scott Walker the sales assistant of $890 less PAYG Withholding of $40, and $1,000 drawings for himself. |
Accounts receivable subsidiary ledger | ||||||
Academy Diving School | Acct code: ADI | |||||
Date | Explanation | Debit | Credit | Balance | ||
June | 12 | Invoice | 4,420 | 4,420 Dr | ||
24 | Adjustment note | 520 | 3,900 Dr | |||
27 | Receipt | 3,900 | 0 | |||
Serious Fun | Acct code: SFU | |||||
Date | Explanation | Debit | Credit | Balance | ||
June | 13 | Invoice | 4,400 | 4,400 Dr | ||
18 | Receipt | 4,400 | 0 | |||
26 | Invoice | 7,400 | 7,400 Dr | |||
Surfng World | Acct code: SWO | |||||
Date | Explanation | Debit | Credit | Balance | ||
June | 11 | Invoice | 7,110 | 7,110 Dr | ||
Accounts payable subsidiary ledger | ||||||
Excitement Plus | Acct code: EPL | |||||
Date | Explanation | Debit | Credit | Balance | ||
June | 2 | Invoice | 21,100 | 21,100 | ||
25 | Payment | 5,400 | 15,700 | |||
Surf Imports | Acct code: SIM | |||||
Date | Explanation | Debit | Credit | Balance | ||
June | 7 | Invoice | 18,200 | 18,200 | ||
8 | Payment | 18,200 | 0 | |||
27 | Invoice | 7,600 | 7,600 |
Prepare a trial balance as at 30 June. Schedules of accounts receivable and accounts payable will be provided.
100 Cash at bank 110 Accounts receivable 120 Inventory 130 Prepaid insurance 171 Shop equipment (cost) 172 Accumulated depreciation - shop equipmen 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 Skate 'n' Surf Trial balance as at 30 June 20XX Debit Account no. Account Credit $ $ $Step by Step Solution
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