Question

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 $23,000. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $26,400 and computer equipment for the shop from Computer Wizards for $5,000. These were paid for with a loan of $26,000 from the bank and cheque for $5,400 from the business bank account. The bank loan is repayable over 4 years.
	1		Paid $3,000 for a 1-year insurance policy covering fire, theft, and public liability.
	2		Purchased inventory (skateboards and protective gear) from Excitement Plus for $20,600 on terms on net 30.
	5		Cash purchase of postage stamps and stationery from Australia Post for $350.
	7		Purchased surfboards and wetsuits from Surf Imports for $18,260 on terms of 10/10, n/30.
	8		Paid $1,430 to Local Newspapers for advertising for the shop for the month.
	8		Paid Surf Imports the amount owing to them less the prompt payment discount.
	11		Credit sale to Surfing World of various inventory items for $7,150 (cost of sales $3,680). Terms net 30.
	12		Credit sale to Academy Diving School of 16 wetsuits at a discounted price of $230 each on terms of net 15. Cost of sales $2,300.
	13		Credit sale to Serious Fun of skateboards and protective gear for $4,800 (cost of sales $2,500). This customer was given terms of 5/10, n/30.
	14		Cash sale of a skateboard and protective gear for $480 (cost of sales $210).
	18		Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
	23		Cash sale of inventory to the value of $910 (cost of sales $420).
	24		Issued an adjustment note (credit note) to Academy Diving School for 2 wetsuits at $230 each that was not the size they required. The cost of the wetsuits to us was $390 and they were put back into inventory.
	25		Paid Excitement Plus $5,300 of the amount owing to them.
	26		Credit sale to Serious Fun of skateboards for $6,600 (cost of sales $2,600). Terms 5/10, n/30.
	27		Purchased wetsuits from Surf Imports for $7,100 on terms of 10/10, n/30.
	27		Received and banked a cheque from Academy Diving School for the amount owing by them.
	30		Paid Energy Australia $230 for electricity expenses.
	30		The owner cashed a cheque for $1,820 to pay wages to Scott Walker the sales assistant of $840 less PAYG Withholding of $50, and $1,030 drawings for himself.

Cash at bank Date Details June 1 Capital 14 Sales revenue 18 Accounts receivable 23 Sales revenue 27 Accounts receivable No. 100 Credit 5,400 3,000 350 Debit Date Details 23,000 June 1 Shop equipment (cost) 480 1 Prepaid insurance 4,560 5 Postage and stationery expense 910 8 Advertising expense 3,220 8 Accounts payable 25 Accounts payable 30 Electricity expense 30 Wages expense 30 Drawings 1,430 16,434 5,300 230 790 1,030 Details Debit Accounts receivable Date June 11 Sales revenue 12 Sales revenue 13 Sales revenue 26 Sales revenue Date Details 7,150 June 18 Cash at bank 3,680 18 Discount allowed 4,800 24 Sales returns and allowances 6,600 27 Cash at bank No. 110 Credit 4,560 240 460 3,220 Details Debit Details Inventory Date June 2 Accounts payable 7 ccounts payable 24 Cost of sales 27 Accounts payable Date 20,600 June 11 Cost of sales 18,260 Cost of sale 390 13 Cost of sales 7,100 14 Cost of sales 23 Cost of sales 26 Cost of sales No. 120 Credit 3,680 2,300 2,500 210 420 2,600 Prepaid insurance Date June 1 Cash at bank Details Details Debit Date 3,000 June 30 Insurance expense No. 130 Credit 250 No. 171 Credit Details Date Details Shop equipment (cost) Date June 1 Bank loan 1 Cash at bank Debit 26,000 5,400 Accumulated depreciation - shop equipment Date Details Debit Date Details June 30 Depreciation expense No. 172 Credit 523 Details Details Accounts payable Date 8 Cash at bank 8 Discount received 25 Cash at bank June Debit Date 16,434 June 2 Inventory 1,826 7 Inventory 5,300 27 Inventory No. 200 Credit 20,600 18,260 7,100

The end of month adjustments are below.

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 8% of the gross wages paid.
d.	Interest charged on the bank loan for the month was $108.

Prepare an adjusted trial balance.

Answer 1

Skate 'n' Surf
Adjusted trial balance
as at 30 June 20XX
Account No	Account	Debit	Credit
100	Cash at bank		1,794
110	Accounts receivable	13,750
120	Inventory	34,640
130	Prepaid insurance	2,750
171	Shop equipment	31,400
172	Accumulated depreciation - shop equipment		523
200	Accounts payable		22,400
210	PAYG withholding payable		50
220	Superannuation payable		67
230	Bank loan		26,108
300	Capital		23,000
310	Drawings	1,030
400	Sales revenue		23,620
410	Sales retuns and allowances	460
420	Discount received		1,826
500	Cost of sales	11,320
600	Advertising expense	1,430
610	Depreciation expense	523
620	Discount allowed	240
630	Electricity expense	230
640	Insurance expense	250
650	Interest expense	108
660	Postage and stationery expense	350
670	Superannuation expense	67
680	Wages expense	840
	Total	99,388	99,388