ledger accounts

210 Skate w' Surf began operations on 1 June, buying and seling surfboards, skateboards, wetsuits and the protective gear for skateboarding. The structure of the business is that of a sole trader The business employed sales assistant during 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 records al transactions in the general Journal. These transactions are the posted to the acpropriate account(s) in the general Medper. 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 Surf contains the accounts and account numbers below 100 Cash at bank 110 Acounts receivable 120 Inventory 130 Prepaid insurance 171 She equipment (cost) 172 Accumulated depreciation - shop equipment 200 Accounts payable PAYG withholding payable 220 Superannuation payable 230 Bank loan 300 Capital 310 Drawings 320 Por loss summary 400 Sales revenue 410 Sales returns and allowances 420 Discount received 500 Cost of sales 600 Advertising expense 610 Depreciation expense Discount alowed 630 y expense 640 Insurance expense 650 inter 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 $29,000. This is capital provided by him. 1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $27,000 and computer equipment for the shop from Computer Wizards for $3,500. These were paid for with a loan of $27,000 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 $24,000 on terms on net 30. 5 Cash purchase of stationery from Officeworks for $300. 7 Purchased surfboards and wetsuits from Surf Imports for $19,000 on terms of 10/10, 1/30. 9 Paid Surf Imports the amount owing to them less the prompt payment discount. 11 Paid $3,600 for a 1-year insurance policy covering fire, theft, and public liability. 12 Paid $1,500 to Local Newspapers for advertising for the shop for the month. 13 Credit sale to Serious Fun of skateboards and protective gear for $4,000 (cost of sales $2,000). This customer was given terms of 5/10, n/30. 14 Credit sale to Surfing World of various inventory items for $7,000 (cost of sales $3,500). Terms net 30. 17 Credit sale to Academy Diving School of 10 wetsuits at a discounted price of $270 each on terms of net 15. Cost of sales $2,500. 18 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $180 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 $270 each that was not the size they required. The cost of the wetsuits to us was $350 and they were put back into inventory. 20 Cash sale of inventory to the value of $900 (cost of sales $450). 23 Paid Excitement Plus $2,000 of the amount owing to them. 25 Credit sale to Serious Fun of skateboards for $7,000 (cost of sales $3,700). Terms 5/10, 1/30. 26 Received and banked a cheque for $4,500 from Surfing World in part payment of the amount owing by them. 27 Purchased wetsuits from Surf Imports for $7,500 on terms of 10/10, V30. 30 Paid Telstra $150 for telephone expenses. 30 The owner cashed a cheque for $790 to pay wages to Scott Walker the sales assistant of $850 less PAYG Withholding of $60. The entries have been journalised below. Post ref. Debit Credit 29,000 29,000 30,500 27,000 3,500 24,000 24,000 300 General journal Date Description 20xx June 1 Cash at bank Capital (Owner's capital contribution) 1 Shop equipment (cost) Bank loan Cash at bank (Display stands, shelving and computer for shop; loan repayable over 3 years) 2 Inventory Accounts payable (Inventory purchase on terms of net 30) 5 Postage and stationery expense Cash at bank (Cash purchase of stationery) 7 Inventory Accounts payable (Credit purchase on terms of 10/10, n/30) 9 Accounts payable Cash at bank Discount received (Supplier paid less prompt payment discount) 11 Prepaid insurance Cash at bank (1 year insurance policy) 12 Advertising expense Cash at bank (Advertising for the month) 300 19,000 19,000 19,000 17,100 1,900 3,600 3,600 1,500 1,500 4,000 4,000 2,000 2,000 7,000 7,000 3,500 3,500 2,700 2,700 2,500 2,500 13 Accounts receivable Sales revenue (Credit sale on terms of 5/10, n/30) 13 Cost of sales Inventory (Adjust inventory) 14 Accounts receivable Sales revenue (Credit sale on terms of net 30) 14 Cost of sales Inventory (Adjust inventory) 17 Accounts receivable Sales revenue (Credit sale on terms of net 15) 17 Cost of sales Inventory (Adjust inventory) 18 Accounts payable Inventory (Faulty protective gear returned to supplier) 18 Cash at bank Discount allowed Accounts receivable (Payment received less prompt payment discount) 19 Sales returns and allowances Accounts receivable (Wetsuits returned by customer put back into inventory) 19 Inventory Cost of sales (Adjust inventory) 20 Cash at bank Sales revenue (Cash sale) 20 Cost of sales Inventory (Adjust inventory) 180 180 3,800 200 4,000 810 810 350 350 900 900 450 450 2,000 2,000 7,000 7,000 3,700 3,700 4,500 4,500 23 Accounts payable Cash at bank (Part payment of amount owing) 25 Accounts receivable Sales revenue (Credit sale on terms of 5/10, n/30) 25 Cost of sales Inventory (Adjust inventory) 26 Cash at bank Accounts receivable (Payment received from customer) 27 Inventory Accounts payable (Credit purchase on terms of 10/10, n/30) 30 Telephone expense Cash at bank (Pay telephone expense) 30 Wages expense Cash at bank PAYG withholding payable (Wages paid to Scott Walker) 7,500 7,500 150 150 850 790 60 Debit 0 Post to the general ledger accounts. The accounts receivable and accounts payable subsidiary ledgers are provided for information only. Accounts receivable subsidiary ledger Academy Diving School Acct code: ADI Date Explanation Credit Balance June 17 Invoice 2,700 2,700 Dr 19 Adjustment note 810 1,890 Dr Serious Fun Acct code: SFU Date Explanation Debit Credit Balance June 13 Invoice 4,000 4,000 Dr 18 Receipt 4,000 25 Invoice 7,000 7,000 Dr Surfng World Acct code: SWO Date Explanation Debit Credit Balance June 14 Invoice 7,000 7,000 Dr 26 Receipt 4,500 2,500 Dr Accounts payable subsidiary ledger Excitement Plus Acct code: EPL Date Explanation Debit Credit Balance June 2 Invoice 24,000 24,000 18 Adjustment note 23,820 23 Payment 2,000 21,820 Surf Imports Acct code: SIM Date Explanation Debit Credit Balance June 7 Invoice 19,000 19,000 9 Payment 19,000 0 7,500 7,500 180 27 Invoice