Transactions June 1 The owner opened a bank account for the business with a deposit of $33,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $33,000 and computer equipment for the shop from Computer Wizards for $6,000. These were paid for with a loan of $36,000 from the bank and cheque for $3,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $5,040 for a 1-year insurance policy covering fire, theft, and public liability. 2 Paid $1,040 to Local Newspapers for advertising for the shop for the month. 7 Purchased inventory (skateboards and protective gear) from Excitement plus for $28,000 on terms on net 30. 8 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. 8 Cash sale of a skateboard and protective gear for $520 (cost of sales $210). 11 Cash purchase of postage stamps and stationery from Australia Post for $150. 12 Credit sale to Surfing World of various inventory items for $7,950 (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 $180. 13 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. 14 Paid Surf Imports the amount owing to them less the prompt payment discount. 17 Credit sale to Academy Diving School of 14 wetsuits at a discounted price of $260 each on terms of net 15. Cost of sales $3,200. 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 $260 each that was not the size they required. The cost of the wetsuit to us was $180 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for $8,800 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $7,800 (cost of sales $4,400). 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 $1,200 was made on the bank loan. 30 The owner cashed a cheque for $790 to pay wages to Scott Walker the sales assistant of $830 less PAYG Withholding of $40. The June transactions above have been journalised and posted. Skate 'n' Surf Trial balance as at 30 June 20xx Account no. Account 100 Cash at bank 110 Accounts receivable 120 Inventory 130 Prepaid insurance 171 Shop equipment (cost) 200 Accounts payable 210 PAYG withholding payable 230 Bank loan 300 Capital 400 Sales revenue 410 Sales returns and allowances 420 Discount received 500 Cost of sales 600 Advertising expense 620 Discount allowed 660 Postage and stationery expense 690 Wages expense Debit Credit 4,930 15,750 45,590 5,040 39,000 32,720 40 34,800 33,000 24,910 260 2,400 15,030 1,040 250 150 830 $127,870 $127,870 Journalise the following end-of-month adjustments. (Note: Enter debit entries first, followed by credit entries in the general journal. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Leave blank any answer fields that do not require an answer. Round answer to the nearest whole dollar.) 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 10.0% of the gross wages paid. d. Interest charged on the bank loan for the month was $160. Description Post ref. Debit Date 20xx Credit June (Depreciation for the month) (Amount of prepaid insurance expired for June) v (Superannuation payable for June) (Interest charged to bank loan for June)
