7

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
640		Insurance expense
650		Interest expense
660		Postage and stationery expense
670		Superannuation expense
680		Telephone expense
690		Wages expense

Transactions
June	1		The owner opened a bank account for the business with a deposit of $30,600. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $28,100 and computer equipment for the shop from Computer Wizards for $3,500. These were paid for with a loan of $28,100 from the bank and cheque for $3,500 from the business bank account. The bank loan is repayable over 3 years.
	2		Purchased inventory (skateboards and protective gear) from Excitement Plus for $24,200 on terms on net 30.
	5		Cash purchase of stationery from Officeworks for $340.
	7		Purchased surfboards and wetsuits from Surf Imports for $20,100 on terms of 10/10, n/30.
	9		Paid Surf Imports the amount owing to them less the prompt payment discount.
	11		Paid $4,500 for a 1-year insurance policy covering fire, theft, and public liability.
	12		Paid $1,520 to Local Newspapers for advertising for the shop for the month.
	13		Credit sale to Serious Fun of skateboards and protective gear for $5,300 (cost of sales $2,700). This customer was given terms of 5/10, n/30.
	14		Credit sale to Surfing World of various inventory items for $7,300 (cost of sales $4,200). Terms net 30.
	17		Credit sale to Academy Diving School of 20 wetsuits at a discounted price of $280 each on terms of net 15. Cost of sales $3,200.
	18		Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $190.
	18		Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
	19		Issued an adjustment note (credit note) to Academy Diving School for 3 wetsuits at $280 each that was not the size they required. The cost of the wetsuits to us was $400 and they were put back into inventory.
	20		Cash sale of inventory to the value of $900 (cost of sales $500).
	23		Paid Excitement Plus $2,900 of the amount owing to them.
	25		Credit sale to Serious Fun of skateboards for $7,500 (cost of sales $3,700). Terms 5/10, n/30.
	26		Received and banked a cheque for $5,500 from Surfing World in part payment of the amount owing by them.
	27		Purchased wetsuits from Surf Imports for $8,000 on terms of 10/10, n/30.
	30		Paid Telstra $190 for telephone expenses.
	30		The owner cashed a cheque for $830 to pay wages to Scott Walker the sales assistant of $860 less PAYG Withholding of $30.

The end of month adjustments are below.

a.	Depreciation on shop equipment for the month is 25% 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 $117.

The transactions above have been journalised and posted. The adjusted trial balance is below.

Skate 'n' Surf Adjusted trial balance as at 30 June 20XX Account no. Account Debit Credit 100 Cash at bank 10,165 110 Accounts receivable 14,060 120 Inventory 38,210 130 Prepaid insurance 4,125 171 Shop equipment (cost) 31,600 172 Accumulated depreciation - shop equipment 658 200 Accounts payable 29,110 210 PAYG withholding payable 30 220 Superannuation payable 82 230 Bank loan 28,217 300 Capital 30,600 400 Sales revenue 26,600 410 Sales returns and allowances 840 420 Discount received 2,010 500 Cost of sales 13,900 600 Advertising expense 1,520 610 Depreciation expense 658 620 Discount allowed 265 640 Insurance expense 375 650 Interest expense 117 660 Postage and stationery expense 340 670 Superannuation expense 82 680 Telephone expense 190 690 Wages expense 860 $117,307 $117,307 Prepare the statement of profit or loss for June. (Enter accounts in ascending account order.) Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20xx Revenue Sales revenue Less: Net sales revenue Less: Gross profit Other revenue: Expenses Total expenses Net profit / (loss) $