Transactions June 1 The owner opened a bank account for the business with a deposit $23,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $26,000 and computer equipment for the shop from Computer Wizards for $4,300. These were paid for with a loan of $24,000 from the bank and cheque for $6,300 from the business bank account. The bank loan is repayable over 4 years. 1 Paid $3,840 for a 1-year insurance policy covering fire, theft, and public liability. 2 Purchased inventory (skateboards and protective gear) from Excitement Plus for $20,600 on terms on net 30. 5 Cash purchase of postage stamps and stationery from Australia Post for $410. 7 Purchased surfboards and wetsuits from Surf Imports for $18,290 on terms of 10/10, n/30. 8 Paid $1,440 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 $7,200 (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 $5,000 (cost of sales $2,500). This customer was given terms of 5/10, n/30. 14 Cash sale of a skateboard and protective gear for $460 (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 $910 (cost of sales $470). 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 $310 and they were put back into inventory. 25 Paid Excitement Plus $5,200 of the amount owing them. 26 Credit sale to Serious Fun of skateboards for $6,500 (cost of sales $3,000). Terms 5/10, n/30. 27 Purchased wetsuits from Surf Imports for $7,800 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 $150 for electricity expenses. 30 The owner cashed a cheque for $1,780 to pay wages to Scott Walker the sales assistant $820 less PAYG Withholding $30, and $990 drawings for himself. 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 $100. The transactions above have been journalised and posted. Cash at bank Date Details Debit Date Details June 1 Capital 23,000 June 1 Shop equipment (cost) 14 Sales revenue 460 1 Prepaid insurance 18 Accounts receivable 4,750 5 Postage and stationery expense 23 Sales revenue 910 8 Advertising expense 27 Accounts receivable 3,900 8 Accounts payable 25 Accounts payable 30 Electricity expense 30 Wages expense 30 Drawings Accounts receivable Date Details Debit Date Details June 11 Sales revenue 7,200 June 18 Cash at bank 12 Sales revenue 4,420 18 Discount allowed 13 Sales revenue 5,000 24 Sales returns and allowances 26 Sales revenue 6,500 27 Cash at bank No. 100 Credit 6,300 3,840 410 1,440 16,461 5,200 150 790 990 No. 110 Credit 4,750 250 520 3,900 Details Details Inventory Date June 2 Accounts payable 7 Accounts payable 24 Cost of sales 27 Accounts payable Debit Date 20,600 June 11 Cost of sales 18,290 12 Cost of sales 310 13 Cost of sales 7,800 14 Cost of sales 23 Cost of sales 26 Cost of sales No. 120 Credit 3,650 2,300 2,500 200 470 3,000 Prepaid insurance Date June 1 Cash at bank Details Details Debit Date 3,840 June 30 Insurance expense No. 130 Credit 320 No. 171 Credit Details Date Details Shop equipment (cost) Date June 1 Bank loan 1 Cash at bank Debit 24,000 6,300 No. 172 Accumulated depreciation - shop equipment Date Details Debit Date Details June 30 Depreciation expense Credit 631 Details Details Accounts payable Date June 8 Cash at bank 8 Discount received 25 Cash at bank Debit Date 16,461 June 2 Inventory 1,829 7 Inventory 5,200 27 Inventory No. 200 Credit 20,600 18,290 7,800 No. 210 PAYG withholding payable Date Details Debit Details Credit Date June 30 Wages expense 30 Superannuation payable Date Details Debit Date Details June 30 Superannuation expense No. 220 Credit 80 Bank loan Date Details Debit Date Details June 1 Shop equipment (cost) 30 Interest expense No. 230 Credit 24,000 100 Capital Date Details Debit Details Date June 1 Cash No. 300 Credit 23,000 bank Drawings Date June 30 Cash at bank No. 310 Credit Details 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 7,200 4,420 5,000 460 910 6,500 No. 410 Credit Debit Date Details Sales returns and allowances Date Details June 24 Accounts receivable Discount received Date Details 520 Debit Details Date June No. 420 Credit 1,829 8 Accounts payable Details Details No. 500 Credit 310 Cost of sales Date June 11 Inventory 12 Inventory 13 Inventory 14 Inventory 23 Inventory 26 Inventory Debit Date 3,650 June 24 Inventory 2,300 2,500 200 470 3,000 Advertising expense Date June 8 Cash at bank No. 600 Credit Details Date Details Debit 1,440 Depreciation expense Date Details June 30 Accumulated depreciation - shop equipment No. 610 Credit Debit Date Details 631 Discount allowed Date Details June 18 Accounts receivable No. 620 Credit Debit Date Details 250 No. 630 Details Debit Date Details Credit 150 Electricity expense Date June 30 Cash at bank Insurance expense Date June 30 Prepaid insurance No. 640 Credit Details Debit Date Details 320 Interest expense Date June 30 Bank loan No. 650 Credit Details Debit Date Details 100 No. 660 Postage and stationery expense Date Details June 5 Cash at bank Debit Details Credit Date 410 Debit Date Details Credit Date Details June 30 Superannuation payable 80 No. 690 Credit Debit Date Details Wages expense Date Details June 30 Cash at bank 30 PAYG withholding payable 790 30 Prepare an adjusted trial balance. Skate 'n' Surf Adjusted trial balance as at 30 June 20XX Debit Account no Account Credit $ $