Question
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
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 Paid $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 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 Paid 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 $8,500 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 $900 was made on the bank loan.
30 The owner cashed a cheque for $960 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 27,790
Less: Sales returns and allowances 370
Net sales revenue 27,420
Less: Cost of sales 16,800
Gross profit 10,620
Other revenue:
Discount received 2,400
13,020
Expenses
Advertising expense 1,180
Depreciation expense 375
Discount allowed 270
Insurance expense 350
Interest expense 150
Postage and stationery expense 180
Superannuation exepnse 95
Wages expense 1,000
Total expenses 3,600
Net profit/(loss) $9,420
Collapse question part
(a)
Partially correct answer. Your answer is partially correct.
Journalise end-of-year closing entries.
(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. Enter accounts following the order of accounts given in the statement of profit or loss.)
Date
Details
Post ref.
Debit
Credit
20XX
June
Entry field with correct answer
Entry field with correct answer
Sales revenue
Entry field with incorrect answer
27420
Entry field with correct answer
Entry field with correct answer
Discount received
Entry field with correct answer
2400
Entry field with correct answer
Entry field with correct answer
Profit or loss summary
Entry field with correct answer
Entry field with incorrect answer
29820
(To close revenue accounts)
Entry field with correct answer
Entry field with correct answer
Profit or loss summary
Entry field with incorrect answer
20400
Entry field with correct answer
Entry field with correct answer
Cost of sales
Entry field with correct answer
Entry field with correct answer
16800
Entry field with correct answer
Advertising expense
Entry field with correct answer
Entry field with correct answer
1180
Entry field with correct answer
Depreciation expense
Entry field with correct answer
Entry field with correct answer
375
Entry field with correct answer
Discount allowed
Entry field with correct answer
Entry field with correct answer
270
Entry field with correct answer
Insurance expense
Entry field with correct answer
Entry field with correct answer
350
Entry field with correct answer
Interest expense
Entry field with correct answer
Entry field with correct answer
150
Entry field with correct answer
Postage and stationery expense
Entry field with correct answer
Entry field with correct answer
180
Entry field with correct answer
Superannuation expense
Entry field with correct answer
Entry field with correct answer
95
Entry field with correct answer
Wages expense
Entry field with correct answer
Entry field with correct answer
1000
Entry field with incorrect answer
Entry field with incorrect answer
Entry field with incorrect answer
(To close expense accounts)
Entry field with correct answer
Entry field with correct answer
Profit or loss summary
Entry field with correct answer
9420
Entry field with correct answer
Entry field with correct answer
Capital
Entry field with correct answer
Entry field with correct answer
9420
(To close profit to capital account)
SHOW LIST OF ACCOUNTS
SHOW ANSWER
Attempts: 1 of 1 used
Collapse question part
(b)
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.)
Cash at bank No. 100
Date Details Debit Date Details Credit
June 1 Capital 40,000 June 1 Shop equipment (cost) 3,500
8 Sales revenue 540 2 Prepaid insurance 4,200
13 Accounts receivable 5,130 2 Advertising expense 1,180
27 Accounts receivable 5,550 11 Postage and stationery 180
14 Accounts payable 21,600
23 Accounts payable 3,900
30 Bank loan 900
30 Wages expense 960
$
$
July
July
Accounts receivable
No. 110
Date Details Debit Date Details Credit
June 8 Sales revenue 5,400 June 13 Cash at bank 5,130
12 Sales revenue 7,930 13 Discount allowed 270
17 Sales revenue 5,920 24 Sales returns and allowances 370
25 Sales revenue 8,000 27 Cash at bank 5,550
$
$
July
July
Inventory
No. 120
Date Details Debit Date Details Credit
June 5 Accounts payable 23,000 June 8 Cost of sales 200
7 Accounts payable 24,000 8 Cost of sales 3,000
24 Cost of sales 320 12 Accounts payable 160
24 Accounts payable 8,500 12 Cost of sales 4,900
17 Cost of sales 5,120
25 Cost of sales 3,900
$
$
July
July
Prepaid insurance
No. 130
Date Details Debit Date Details Credit
June 2 Cash at bank 4,200 June 30 Insurance expense 350
$
$
July
July
Shop equipment (cost)
No. 171
Date Details Debit Date Details Credit
June 1 Bank loan 41,500
1 Cash at bank 3,500
$45,000
Accumulated depreciation - shop equipment
No. 172
Date Details Debit Date Details Credit
June 30 Depreciation expense 375
Accounts payable
No. 200
Date Details Debit Date Details Credit
June 12 Inventory 160 June 5 Inventory 23,000
14 Cash at bank 21,600 7 Inventory 24,000
14 Discount received 2,400 24 Inventory 8,500
23 Cash at bank 3,900
$
$
July
July
PAYG withholding payable
No. 210
Date Details Debit Date Details Credit
June 30 Wages expense 40
Superannuation payable
No. 220
Date Details Debit Date Details Credit
June 30 Superannuation expense 95
Bank loan
No. 230
Date Details Debit Date Details Credit
June 30 Cash at bank 900 June 1 Shop equipment (cost) 41,500
30 Interest expense 150
$
$
July
July
Capital
No. 300
Date Details Debit Date Details Credit
June
June 1 Cash at bank 40,000
$
Drawings
No. 310
Date Details Debit Date Details Credit
Profit or loss summary
No. 320
Date Details Debit Date Details Credit
June
June
$
$
Sales revenue No. 400
Date Details Debit Date Details Credit
June
June 8 Cash at bank 540
8 Accounts receivable 5,400
12 Accounts receivable 7,930
17 Accounts receivable 5,920
25 Accounts receivable 8,000
$
$
Sales returns and allowances
No. 410
Date Details Debit Date Details Credit
June 24 Accounts receivable 370 June
Discount received
No. 420
Date Details Debit Date Details Credit
June
June 14 Accounts payable 2,400
Cost of sales
No. 500
Date Details Debit Date Details Credit
June 8 Inventory 200 June 24 Inventory 320
8 Inventory 3,000
12 Inventory 4,900
17 Inventory 5,120
25 Inventory 3,900
$
$
Advertising expense
No. 600
Date Details Debit Date Details Credit
June 2 Cash at bank 1,180 June
Depreciation expense
No. 610
Date Details Debit Date Details Credit
June 30 Accumulated depreciation - shop equipment 375 June
Discount allowed
No. 620
Date Details Debit Date Details Credit
June 13 Accounts receivable 270 June
Electricity expense
No. 630
Date Details Debit Date Details Credit
Insurance expense
No. 640
Date Details Debit Date Details Credit
June 30 Prepaid insurance 350 June
Interest expense
No. 650
Date Details Debit Date Details Credit
June 30 Bank loan 150 June
Postage and stationery expense
No. 660
Date Details Debit Date Details Credit
June 11 Cash at bank 180 June
Superannuation expense
No. 670
Date Details Debit Date Details Credit
June 30 Superannuation payable 95 June
Telephone expense
No. 680
Date Details Debit Date Details Credit
Wages expense
No. 690
Date Details Debit Date Details Credit
June 30 Cash at bank 960 June
30 PAYG withholding payable 40
$
$
SHOW LIST OF ACCOUNTS
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Patient Care Audit Criteria
Authors: Jean Gayton Carroll
1st Edition
0870943928, 978-0870943928
