Transactions June 1 The owner opened a bank account for the business with a deposit of $40,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $40,000 and computer equipment for the shop from Computer Wizards for $5,000. These were paid for with a loan of $41,500 from the bank and cheque for $3,500 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $4,200 for a 1-year insurance policy covering fire, theft, and public liability. 2 Pald $1,180 to Local Newspapers for advertising for the shop for the month. 5 Purchased inventory (skateboards and protective gear) from Excitement Plus for $23,000 on terms on net 30. 7 7 Purchased surfboards and wetsuits from Surf Imports for $24,000 on terms of 10/10, n/30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,400 (cost of sales $3,000). This customer was given terms of 5/10, n/30. 8 Cash sale of a skateboard and protective gear for $540 (cost of sales $200). 11 Cash purchase of postage stamps and stationery from Australia Post for $180. 12 Credit sale to Surfing World of various inventory items for $7,930 (cost of sales $4,900). Terms net 30. 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $160. 13 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. 14 Pald Surf Imports the amount owing to them less the prompt payment discount. 17 Credit sale to Academy Diving School of 16 wetsuits at a discounted price of $370 each on terms of net 15. Cost of sales $5,120. 23 Paid Excitement plus $3,900 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $370 each that was not the size they required. The cost of the wetsuit to us was $320 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for 58,500 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $8,000 (cost of sales $3,900). Terms 5/10, n/30. 27 Received and banked a cheque from Academy Diving School for the amount owing by them. 30 A repayment of 5900 was made on the bank loan. 30 The owner cashed a cheque for $950 to pay wages to Scott Walker the sales assistant of $1,000 less PAYG Withholding of $40. The end of month adjustments are below. a. Depreciation on shop equipment for the month is 10% 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 $150. The transactions above have been journalised and posted. The statement or profit or loss for June is below. Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20XX Revenue Sales revenue Sales revenue Less: Sales returns and allowances Net sales revenue Less: Cost of sales Gross profit Other revenue: Discount received 27,790 370 27,420 16,800 10,620 2,400 13,020 1,180 375 270 350 Expenses Advertising expense Depreciation expense Discount allowed Insurance expense Interest expense Postage and stationery expense Superannuation exepnse Wages expense Total expenses Net profit/(loss) 150 180 95 1,000 3,600 $9,420 Post end-of-year closing entries and complete the closing process in the general ledger. (Note: Leave blank any answer fields that do not require an answer.) No. 100 Cash at bank Date June Debit Date Credit Detalls 1 Capital 8 Sales revenue 13 Accounts receivable 27 Accounts receivable 40,000 June 5101 5,130 5,550 Detalls 1 Shop equipment (cost) 2 Prepaid Insurance 2 Advertising expense 11 Postage and stationery 14 Accounts payable 23 Accounts payable 30 Bank loan 3,500 4,200 1,180 180 [no answer] [no answer] [no answer] [no answer] 21,600 3,900 [no answer) [no answer] 900 30 Wages expense 960 [no answer] [no answer] [no answer] [no answer] [no answer] [no answer) $ $ July [no answer] [no answer] July [no answer] (no answer] No. 110 Debit Credit Accounts receivable Date Details June 8 Sales revenue 12 Sales revenue 17 Sales revenue 25 Sales revenue 5,400 June 7,930 5,920 8,000 Date Details 13 Cash at bank 13 Discount allowed 24 Sales returns and allowances 27 Cash at bank [no answer] [no answer] 5,130 270 370 5,550 $ $ July [no answer) no answer] July [no answer] (no answer] No. 120 Debit Date Credit Inventory Date Details June 5 Accounts payable 7 Accounts payable 24 Cost of sales 24 Accounts payable [no answer) (no answer] [no answer) (no answer) [no answer] (no answer] 23,000 June 24,000 320 8,500 Details 8 Cost of sales 8 Cost of sales 12 Accounts payable 12 Cost of sales 17 Cost of sales 200 3,000 160 4,900 5,120 25 Cost of sales 3,900 [no answer] [no answer] $ July [no answer] [no answer] July [no answer] [no answer] Prepaid insurance No. 130 No. 130 Prepaid insurance Date Details June 2 Cash at bank Debit Date Credit Details 30 Insurance expense 4,200 June 350 [no answer] [no answer] [no answer] [no answer] $ S July [no answer] [no answer] July [no answer) [no answer] No. 171 Debit Date Details Credit Shop equipment (cost) Date Details June 1 Bank loan 1 Cash at bank 41,500 3,500 $45,000 No. 172 Accumulated depreciation - shop equipment Date Details Debit Credit Date June Details 30 Depreciation expense 375 No. 200 Debit Date Credit Accounts payable Date Details June 12 Inventory 14 Cash at bank 14 Discount received 23 Cash at bank [no answer) [no answer] 160 June 21,600 2,400 3,900 Details 5 Inventory 7 Inventory 24 Inventory 23,000 24,000 8,500 [no answer] [no answer] $ $ July [no answer] [no answer] July [no answer] [no answer] No. 210 PAYG withholding payable Date Details Debit Credit Date June Details 30 Wages expense | 40 No. 220 Superannuation payable Date Details Debit Credit Date June Details 30 Superannuation expense 95 No. 230 Bank loan Date June Debit Date Credit Details 30 Cash at bank 900 June Details 1 Shop equipment (cost) 30 Interest expense 41,500 [no answer] [no answer] 150 $ S July [no answer] [no answer] July [no answer) (no answer] No. 230 Bank loan Date June Debit Date Credit Details 30 Cash at bank 900 June Details 1 Shop equipment (cost) 30 Interest expense 41,500 150 [no answer] [no answer] July [no answer] [no answer] July (no answer] [no answer] No. 300 Debit Date Credit Capital Date Details June (no answer] [no answer] [no answer] [no answer] Details 1 Cash at bank June 40,000 [no answer] [no answer] $ Drawings No. 310 Date Details Debit Date Detalls Credit No. 320 Debit Credit Profit or loss summary Date Details June [no answer] [no answer] [no answer) (no answer] Date Details June (no answer] [no answer] [no answer] [no answer] $ No. 400 Sales revenue Date Details Debit Date Details Credit June 8 Cash at bank 540 5,400 June [no answer] (no answer] [no answer] (no answer] [no answer] [no answer] [no answer] [no answer] [no answer] (no answer] 8 Accounts receivable 12 Accounts receivable 17 Accounts receivable 7,930 5,920 25 Accounts receivable 8,000 $ No. 410 Sales returns and allowances Date Details Debit Date Details Credit June 24 Accounts receivable 370 June (no answer] (no answer] No. 420 Discount received Date Details June [no answer] [no answer] Debit Date Credit Details 14 Accounts payable June 2,400 No. 420 Discount received Date Details Debit Date Details Credit June [no answer] [no answer] June 14 Accounts payable 2,400 No. 500 Debit Credit Cost of sales Date Details June 8 Inventory 8 8 Inventory 12 Inventory 320 200 June 3,000 Date Details 24 Inventory [no answer] [no answer] [no answer] [no answer] [no answer] [no answer) [no answer] [no answer] 4,900 17 Inventory 5,120 25 Inventory 3,900 No. 600 Advertising expense Date Details June 2 Cash at bank Debit Credit Date Details 1,180 June [no answer] (no answer] No. 610 Depreciation expense Date Details June 30 Accumulated depreciation - shop equipment Debit Credit Date Details 375 June [no answer] [no answer] No. 620 Discount allowed Date Details June 13 Accounts receivable Debit Date Details Credit 270 June (no answer] [no answer] No. 630 Electricity expense Date Details Debit Date Detalls Credit No. 640 Insurance expense Date Details Debit Date Details Credit June 30 Prepaid insurance 350 June (no answer] [no answer] No. 650 Interest expense Date Details Debit Credit Date Details 150 June [no answer] [no answer] June 30 Bank loan No. 660 Postage and stationery expense Date Details June 11 Cash at bank Debit Credit Date Details 180 June [no answer] [no answer ] Superannuation expense No. 670 No. 660 Postage and stationery expense Date Details Debit Date Details Credit June 11 Cash at bank 180 June [no answer] [no answer] No. 670 Superannuation expense Date Details Debit Date Details Credit June 30 Superannuation payable 95 June [no answer] [no answer] No. 680 Telephone expense Date Details Debit Date Details Credit No. 690 Wages expense Date Details Debit Date Details Credit June 30 Cash at bank 960 June [no answer] [no answer] 30 PAYG withholding payable 40 [no answer] [no answer] Transactions June 1 The owner opened a bank account for the business with a deposit of $40,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $40,000 and computer equipment for the shop from Computer Wizards for $5,000. These were paid for with a loan of $41,500 from the bank and cheque for $3,500 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $4,200 for a 1-year insurance policy covering fire, theft, and public liability. 2 Pald $1,180 to Local Newspapers for advertising for the shop for the month. 5 Purchased inventory (skateboards and protective gear) from Excitement Plus for $23,000 on terms on net 30. 7 7 Purchased surfboards and wetsuits from Surf Imports for $24,000 on terms of 10/10, n/30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,400 (cost of sales $3,000). This customer was given terms of 5/10, n/30. 8 Cash sale of a skateboard and protective gear for $540 (cost of sales $200). 11 Cash purchase of postage stamps and stationery from Australia Post for $180. 12 Credit sale to Surfing World of various inventory items for $7,930 (cost of sales $4,900). Terms net 30. 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $160. 13 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. 14 Pald Surf Imports the amount owing to them less the prompt payment discount. 17 Credit sale to Academy Diving School of 16 wetsuits at a discounted price of $370 each on terms of net 15. Cost of sales $5,120. 23 Paid Excitement plus $3,900 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $370 each that was not the size they required. The cost of the wetsuit to us was $320 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for 58,500 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $8,000 (cost of sales $3,900). Terms 5/10, n/30. 27 Received and banked a cheque from Academy Diving School for the amount owing by them. 30 A repayment of 5900 was made on the bank loan. 30 The owner cashed a cheque for $950 to pay wages to Scott Walker the sales assistant of $1,000 less PAYG Withholding of $40. The end of month adjustments are below. a. Depreciation on shop equipment for the month is 10% 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 $150. The transactions above have been journalised and posted. The statement or profit or loss for June is below. Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20XX Revenue Sales revenue Sales revenue Less: Sales returns and allowances Net sales revenue Less: Cost of sales Gross profit Other revenue: Discount received 27,790 370 27,420 16,800 10,620 2,400 13,020 1,180 375 270 350 Expenses Advertising expense Depreciation expense Discount allowed Insurance expense Interest expense Postage and stationery expense Superannuation exepnse Wages expense Total expenses Net profit/(loss) 150 180 95 1,000 3,600 $9,420 Post end-of-year closing entries and complete the closing process in the general ledger. (Note: Leave blank any answer fields that do not require an answer.) No. 100 Cash at bank Date June Debit Date Credit Detalls 1 Capital 8 Sales revenue 13 Accounts receivable 27 Accounts receivable 40,000 June 5101 5,130 5,550 Detalls 1 Shop equipment (cost) 2 Prepaid Insurance 2 Advertising expense 11 Postage and stationery 14 Accounts payable 23 Accounts payable 30 Bank loan 3,500 4,200 1,180 180 [no answer] [no answer] [no answer] [no answer] 21,600 3,900 [no answer) [no answer] 900 30 Wages expense 960 [no answer] [no answer] [no answer] [no answer] [no answer] [no answer) $ $ July [no answer] [no answer] July [no answer] (no answer] No. 110 Debit Credit Accounts receivable Date Details June 8 Sales revenue 12 Sales revenue 17 Sales revenue 25 Sales revenue 5,400 June 7,930 5,920 8,000 Date Details 13 Cash at bank 13 Discount allowed 24 Sales returns and allowances 27 Cash at bank [no answer] [no answer] 5,130 270 370 5,550 $ $ July [no answer) no answer] July [no answer] (no answer] No. 120 Debit Date Credit Inventory Date Details June 5 Accounts payable 7 Accounts payable 24 Cost of sales 24 Accounts payable [no answer) (no answer] [no answer) (no answer) [no answer] (no answer] 23,000 June 24,000 320 8,500 Details 8 Cost of sales 8 Cost of sales 12 Accounts payable 12 Cost of sales 17 Cost of sales 200 3,000 160 4,900 5,120 25 Cost of sales 3,900 [no answer] [no answer] $ July [no answer] [no answer] July [no answer] [no answer] Prepaid insurance No. 130 No. 130 Prepaid insurance Date Details June 2 Cash at bank Debit Date Credit Details 30 Insurance expense 4,200 June 350 [no answer] [no answer] [no answer] [no answer] $ S July [no answer] [no answer] July [no answer) [no answer] No. 171 Debit Date Details Credit Shop equipment (cost) Date Details June 1 Bank loan 1 Cash at bank 41,500 3,500 $45,000 No. 172 Accumulated depreciation - shop equipment Date Details Debit Credit Date June Details 30 Depreciation expense 375 No. 200 Debit Date Credit Accounts payable Date Details June 12 Inventory 14 Cash at bank 14 Discount received 23 Cash at bank [no answer) [no answer] 160 June 21,600 2,400 3,900 Details 5 Inventory 7 Inventory 24 Inventory 23,000 24,000 8,500 [no answer] [no answer] $ $ July [no answer] [no answer] July [no answer] [no answer] No. 210 PAYG withholding payable Date Details Debit Credit Date June Details 30 Wages expense | 40 No. 220 Superannuation payable Date Details Debit Credit Date June Details 30 Superannuation expense 95 No. 230 Bank loan Date June Debit Date Credit Details 30 Cash at bank 900 June Details 1 Shop equipment (cost) 30 Interest expense 41,500 [no answer] [no answer] 150 $ S July [no answer] [no answer] July [no answer) (no answer] No. 230 Bank loan Date June Debit Date Credit Details 30 Cash at bank 900 June Details 1 Shop equipment (cost) 30 Interest expense 41,500 150 [no answer] [no answer] July [no answer] [no answer] July (no answer] [no answer] No. 300 Debit Date Credit Capital Date Details June (no answer] [no answer] [no answer] [no answer] Details 1 Cash at bank June 40,000 [no answer] [no answer] $ Drawings No. 310 Date Details Debit Date Detalls Credit No. 320 Debit Credit Profit or loss summary Date Details June [no answer] [no answer] [no answer) (no answer] Date Details June (no answer] [no answer] [no answer] [no answer] $ No. 400 Sales revenue Date Details Debit Date Details Credit June 8 Cash at bank 540 5,400 June [no answer] (no answer] [no answer] (no answer] [no answer] [no answer] [no answer] [no answer] [no answer] (no answer] 8 Accounts receivable 12 Accounts receivable 17 Accounts receivable 7,930 5,920 25 Accounts receivable 8,000 $ No. 410 Sales returns and allowances Date Details Debit Date Details Credit June 24 Accounts receivable 370 June (no answer] (no answer] No. 420 Discount received Date Details June [no answer] [no answer] Debit Date Credit Details 14 Accounts payable June 2,400 No. 420 Discount received Date Details Debit Date Details Credit June [no answer] [no answer] June 14 Accounts payable 2,400 No. 500 Debit Credit Cost of sales Date Details June 8 Inventory 8 8 Inventory 12 Inventory 320 200 June 3,000 Date Details 24 Inventory [no answer] [no answer] [no answer] [no answer] [no answer] [no answer) [no answer] [no answer] 4,900 17 Inventory 5,120 25 Inventory 3,900 No. 600 Advertising expense Date Details June 2 Cash at bank Debit Credit Date Details 1,180 June [no answer] (no answer] No. 610 Depreciation expense Date Details June 30 Accumulated depreciation - shop equipment Debit Credit Date Details 375 June [no answer] [no answer] No. 620 Discount allowed Date Details June 13 Accounts receivable Debit Date Details Credit 270 June (no answer] [no answer] No. 630 Electricity expense Date Details Debit Date Detalls Credit No. 640 Insurance expense Date Details Debit Date Details Credit June 30 Prepaid insurance 350 June (no answer] [no answer] No. 650 Interest expense Date Details Debit Credit Date Details 150 June [no answer] [no answer] June 30 Bank loan No. 660 Postage and stationery expense Date Details June 11 Cash at bank Debit Credit Date Details 180 June [no answer] [no answer ] Superannuation expense No. 670 No. 660 Postage and stationery expense Date Details Debit Date Details Credit June 11 Cash at bank 180 June [no answer] [no answer] No. 670 Superannuation expense Date Details Debit Date Details Credit June 30 Superannuation payable 95 June [no answer] [no answer] No. 680 Telephone expense Date Details Debit Date Details Credit No. 690 Wages expense Date Details Debit Date Details Credit June 30 Cash at bank 960 June [no answer] [no answer] 30 PAYG withholding payable 40 [no answer] [no answer]
