Question 1 (Note: Although this question is based on the Skate 'n' Surf business the accounts, amounts and transactions involved may differ between questions, Please read each question separately.) Skate 'n surt began operations on 1 June, buying and selling surfboards, skateboards, wetsults and the protective gear for skateboarding. The structure of the business is that of a sole trader The business employed a sales assistant du me the month who is to be paid fortnightly Tax is deducted from the employee's wages (PAYG withholding tax) and remitted to the Australian Taxation Office (ATO) on a quarterly basis The business has not registered with the ATO for the goods and services tax (GST) and has elected to use the accrual basis of accounting. Accounting records The business record all transactions in the general Journal These transactions are the posted to the appropriate accounts) in the general ledger. The accounts receivable and accounts payable subsidiary ledgers are provided for information only, you are not required to post to these ledgers Chart of accounts The chart of accounts for Skate 'n' Surf contains the accounts and account numbers below. 100 Cash at bank 110 Accounts receivable 120 Inventory 130 Prepaid insurance 171 Shop equipment (cost) 172 Accumulated depreciation - shop equipment 200 Accounts payable 210 PAYG withholding payable 220 Superannuation payable 230 Bank loan 300 Capital 310 Drawings 320 Profit or loss summary 400 Sales revenue 410 Sales returns and allowances 420 Discount received 500 Cost of sales 600 Advertising expense 610 Depreciation expense 620 Discount allowed 630 Electricity expense FULL SCREEN PRINTER VERSION BACK NEX 630 Electricity expense 640 Insurance expense 650 Interest expense 660 Stationery 670 Superannuation expense 680 Telephone expense 590 Wages expense Transactions June 1 The owner Opened a bank account for the business with a deposit of $24,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $32,700 and computer equipment for the shop from Computer Wizards for $3,900. These were paid for with a loan of $29,800 from the bank and cheque for $6,800 from the business bank account. The bank loan is repayable over 3 years 1 Paid $4,520 for a 1-year Insurance policy covering fire, theft, and public liability 2 Purchased inventory (skateboards and protective gear) from Excitement plus for $17,300 on terms on net 30 5 Paid $1,400 to Local Newspapers for advertising for the shop for the month 6 Cash sale of a skateboard and protective gear for $410 (cost of sales $165) 7 Purchased surfboards and wetsuits from Surf Imports for $17,500 on terms of 10/10, 1/30 & Returned some protective gear to Excitement plus that was faulty and received an adjustment note (credit note) from them for $180 9 Credit sale to Serious Fun of skateboards and protective gear for $4,600 (cost of sales $1,700). This customer was given terms of 5/10, 1/30 11 Paid Surf Imports the amount owing to them less the prompt payment discount Activate Windows 12 Credit sale to Surfing World of various inventory items for $6,710 (cost of sales $3,230) Terms net 30 13 Cash purchase of stationery from Officeworks for $320 14 Credit sale to Academy Diving School of 20 wetsuits at a discounted price of $250 each on terms of net 15. Cost of sales 52,270 18 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount 19 Cash sale of inventory to the value of 5870 (cost of sales $400) 20 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $250 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 Paid Excitement Plus $5.500 of the amount owing to them. 25 credit sale to Serious Fun of skateboards for $6,290 (cost of the $2,800). Terms 5/10, 1/30 26 Purchased wetsuits from Surf Imports for $6.100 on terms of 10/10, 1/30 27 Received and banked a cheque from Academy Diving School for the amount owing by them. 30 The owner cashed a cheque for $1,840 to pay wages to Scott Walker the sales assistant of $890 less PAYG Withholding of 540, and $990 drawings for himsit Journalise the June transactions (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 on the same date in descending amount order. If there is more than one account on either the debitor credit side related to the same transaction, record these in descending amount order.) Description Date 20xx Post rel. Debit Credit une owner's capital contribution) Activate Windows costo Settings to Widowe Description Post ref. Debit Date 20XX Credit June (Owner's capital contribution) (Display stands, shelving and computer for shop, loan repayable over 3 years) (1 year Insurance policy) Activate v Go to (Inventory purchase on terms of net 30) FULL SC (Advertising for the month) (Cash sale) (Adjust inventory (Credit purchase on terms of 10/10, 1/30) (Faulty protective gear returned to supplier) (Credit sale on terms of 5/10, n/30) (Adjust inventory) (Supplier paid less prompt payment discount) (Credit sale on terms of net 30) Activa Go to so (Adu inventory (Cash purchase of stationery) (Credit sale on terms of net 15) (Adjust inventory) (Payment received less prompt payment discount) Act SO (Cash sale) (Adjust inventory) (Wetsuit returned by customer put back into inventory) (Adjust inventory) (Part payment of amount owing) Act Got (Credit sale on terms of 5/10, 1/30) (Adjust inventory) (Credit purchase on terms of 10/10, 1/30) (Payment received from customer) (Wages paid to Scott Walker and drawings)