Transactions June 1 The owner opened a bank account for the business with a deposit of $37,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $37,000 and computer equipment for the shop from Computer Wizards for $4,000. These were paid for with a loan of $36,000 from the bank and cheque for $5,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $3,960 for a 1-year insurance policy covering fire, theft, and public liability. 2 Paid $1,070 to Local Newspapers for advertising for the shop for the month. 7 Purchased inventory (skateboards and protective gear) from Excitement Plus for $24,000 on terms on net 30. 8 Credit sale to Serious Fun of skateboards and protective gear for $5,500 (cost of sales $2,800). This customer was given terms of 5/10, n/30. 8 Cash sale of a skateboard and protective gear for $530 (cost of sales $300). 11 Cash purchase of postage stamps and stationery from Australia Post for $110. 12 Credit sale to Surfing World of various inventory items for $7,910 (cost of sales $4,000). Terms net 30. 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $130. 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 $280 each on terms of net 15. Cost of sales $3,400. 23 Paid Excitement Plus $3,500 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $280 each that was not the size they required. The cost of the wetsuit to us was $240 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for $8,900 on terms of 10/10, n/30. 25 Credit sale to Serious Fun of skateboards for $8,500 (cost of sales $3,600). 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 $840 less PAYG Withholding of $50. The June transactions above have been journalised and posted. Account no 100 110 120 130 171 200 210 230 300 400 410 420 500 600 620 660 690 Trial balance as at 30 June 20XX Account Cash at bank Accounts receivable Inventory Prepaid insurance Shop equipment (cost) Accounts payable PAYG withholding payable Bank loan Capital Sales revenue Sales returns and allowances Discount received Cost of sales Advertising expense Discount allowed Postage and stationery expense Wages expense Debit Credit 10,065 16,410 41,910 3,960 41,000 29,270 50 34,800 37,000 26,360 280 2,300 13,860 1,070 275 110 840 $129,780 $129,780 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 20% 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 $152