Question

The transactions above have been journalised and posted. The statement or profit or loss for June is below. Skate 'n' Surf Statement of profit or loss for the period 1 June to 30 June 20XX Revenue   Sales revenue     Sales revenue 27,710     Less: Sales returns and allowances 360          Net sales revenue 27,350   Less: Cost of sales 15,200 Gross profit 12,150   Other revenue:     Discount received 2,200 14,350 Expenses     Advertising expense 1,190     Depreciation expense 500     Discount allowed 265     Insurance expense 390     Interest expense 154     Postage and stationery expense 100     Superannuation exepnse 57     Wages expense 600 Total expenses 3,256 Net profit/(loss) $11,094

(a) Journalise end-of-year closing entries. (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 following the order of accounts given in the statement of profit or loss.)

Answer 1

a) Credit Date General Journal June. 30 Sales Revenue Discount received Income Summary (To Close Revenue accounts) Debit $ 27,710 $ 2.200 $ 29,910 S 18,816 $ 15,200 S 360 $ 1,190 $ 500 S 265 June. 30 Income Summary Cost of Sales Sales returns and allowances Advertising expense Depreciation Expense Discount allowed Insurance Expense Interest Expense Postage and stationery expense Superannuation exepnse Wages Expense (To close expenses account) 390 $ $ $ 154 100 37 600 S 11,094 June 30 Income Summary Skate 'n' Surf Capital (To close Profit to Capital Account) $ 11,094