Question

The June transactions above have been journalised and posted. Skate ‘n’ Surf Trial balance as at 30 June 20XX Account no. Account Debit Credit 100 Cash at bank 14,860 110 Accounts receivable 16,430 120 Inventory 40,510 130 Prepaid insurance 4,080 171 Shop equipment (cost) 45,000 200 Accounts payable 30,280 210 PAYG withholding payable 40 230 Bank loan 41,900 300 Capital 37,000 400 Sales revenue 26,150 410 Sales returns and allowances 260 420 Discount received 2,000 500 Cost of sales 13,970 600 Advertising expense 1,080 620 Discount allowed 250 660 Postage and stationery expense 170 690 Wages expense 760 $137,370 $137,370 Journalise the following end-of-month adjustments. (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. Round answer to the nearest whole dollar.) 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 10.0% of the gross wages paid. d. Interest charged on the bank loan for the month was $154.

Answer 1

а 45000*10%/12 Credit 4080/12 Accounts Title Depreciation Expenses Accumulated Depreciation Insurance Expenses Prepaid Insurnace Wages Expenses Super annuation payable Interest Expenses Interest payable Debit Credit $ 375 $ 375 $ 340 $ 340 $ 76 $ 76 $ 154 $ 154 Debit $ 14,860 $ 16,430 $ 40,510 $ 3,740 $ 45,000 c 760*10% d $ $ . Adjusted Trail Balance Accounts Title Cash at Bank Accounts Receivable Inventory Prepaid Insurance Shop Equipment Accounts Payable PAYG withholding payable Interest payable Accumulated Depreciation Super annuation payable Bank Loan Capital Sales Revenue Sales Returns and allowances Discount received Cost of goods sold Insurance Expenses Interest Expenses Advertising Expenses Depreciation Expenses Discount allowed Post & stationery expenses Wages Expenses $ $ $ $ $ 30,280 40 154 375 76 41,900 37,000 26,150 $ 260 $ 2,000 $ 13,970 340 154 $ 1,080 375 $ 250 $ 170 $ 836 $1,37,975 $1,37,975