Transactions
June	1		The owner opened a bank account for the business with a deposit of $20,000. This is capital provided by him.
	1		Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $26,100 and computer equipment for the shop from Computer Wizards for $4,800. These were paid for with a loan of $26,000 from the bank and cheque for $4,900 from the business bank account. The bank loan is repayable over 4 years.
	1		Paid $3,920 for a 1-year insurance policy covering fire, theft, and public liability.
	2		Purchased inventory (skateboards and protective gear) from Excitement Plus for $21,100 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 $18,200 on terms of 10/10, n/30.
	8		Paid $1,470 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 $7,110 (cost of sales $3,650). Terms net 30.
	12		Credit sale to Academy Diving School of 17 wetsuits at a discounted price of $260 each on terms of net 15. Cost of sales $2,300.
	13		Credit sale to Serious Fun of skateboards and protective gear for $4,400 (cost of sales $2,400). This customer was given terms of 5/10, n/30.
	14		Cash sale of a skateboard and protective gear for $500 (cost of sales $200).
	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 $1,000 (cost of sales $400).
	24		Issued an adjustment note (credit note) to Academy Diving School for 2 wetsuits at $260 each that was not the size they required. The cost of the wetsuits to us was $330 and they were put back into inventory.
	25		Paid Excitement Plus $5,400 of the amount owing to them.
	26		Credit sale to Serious Fun of skateboards for $7,400 (cost of sales $2,600). Terms 5/10, n/30.
	27		Purchased wetsuits from Surf Imports for $7,600 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 $210 for electricity expenses.
	30		The owner cashed a cheque for $1,850 to pay wages to Scott Walker the sales assistant of $890 less PAYG Withholding of $40, and $1,000 drawings for himself.

Accounts receivable subsidiary ledger
Academy Diving School						Acct code: ADI
Date		Explanation		Debit	Credit	Balance
June	12	Invoice		4,420		4,420 Dr
	24	Adjustment note			520	3,900 Dr
	27	Receipt			3,900	0
Serious Fun						Acct code: SFU
Date		Explanation		Debit	Credit	Balance
June	13	Invoice		4,400		4,400 Dr
	18	Receipt			4,400	0
	26	Invoice		7,400		7,400 Dr
Surfng World						Acct code: SWO
Date		Explanation		Debit	Credit	Balance
June	11	Invoice		7,110		7,110 Dr
Accounts payable subsidiary ledger
Excitement Plus						Acct code: EPL
Date		Explanation		Debit	Credit	Balance
June	2	Invoice			21,100	21,100
	25	Payment		5,400		15,700
Surf Imports						Acct code: SIM
Date		Explanation		Debit	Credit	Balance
June	7	Invoice			18,200	18,200
	8	Payment		18,200		0
	27	Invoice			7,600	7,600

Prepare a trial balance as at 30 June. Schedules of accounts receivable and accounts payable will be provided.

Answer rating: 100% (QA)

Particulars Amount Amount Cash 20000 To capital 20000 Shop equipment 26100 Computer equipment 4800 T... View the full answer