(Note: Although this question is based on the Skate 'n' Surf business the accounts, amounts and transactions involved may differ between questions. Please read each question separately.)

Skate 'n' Surf began operations on 1 June, buying and selling surfboards, skateboards, wetsuits and the protective gear for skateboarding. The structure of the business is that of a sole trader.

The business employed a 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 hasnotregistered 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 all transactions in the general journal. These transactions are then posted to the appropriate account(s) in the general ledger and the accounts receivable or accounts payable subsidiary ledgers, where separate accounts are maintained for each customer or supplier.

Chart of accounts

The chart of accounts for Skate 'n' Surf contains the accounts and account numbers below.

100 110 120 130 171 172 200 210 220 230 300 310 320 400 410 420 500 600 610 620 630 640 650 660 670 680 690 Cash at bank Accounts receivable Inventory Prepaid insurance Shop equipment (Dost) Accumulated depreciation - shop equipment Accounts payable PAYG withholding payable Superannuation payable Bank loan Capital Drawings Prot or loss summary Sales revenue Sales retums and aIEowances Discount received Cost of sales Advertising expense Depreciation expense Discount allowed Electricity expense Insurance expense Interest expense Postage and stationery expense Superannuation expense Telephone expense Wages expense Transactions June 1 The owner opened a bank account for the business with a deposit of $36,000. This is capital provided by him. 1 Purchased dlspiay stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $36,000 and computer equipment for the shop from Computer Wizards Eor $9,000. These were paid for with a loan of $41,000 from the bank and cheque for $4,000 from the business bank account. The bank loan is repayable over 4 years. 2 Paid $4,050 for a liyear insurance policy covering re, theft, and public liab'l'ty. 2 Paid $1,150 to Local Newspapers for advertising for the shop for the month. 7 Purchased inventory (skateboards and protective gear} from Excitement Plus for $26,000 on terms on net 30. 8 Credit sale to Serious Fun ofskateboards and protective gear for $5,100 (cost of sales $3,000). This customer was given terms of 5/10, nl3D. 8 Cash sale of a skateboard and protective gear for $580 (cost of sales $250). 1 Cash purchase of postage stamps and stationery from Australia Post for $180. 12 Credit sale to Surfing World of various inventory items for $7,900 (cost of sales $4,500). Terms net 30. 12 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) From them for $100. 13 Received a cheque from Serious Fun for the' amount owing by them after deducting the prompt payment discount. 14 Paid Surf Imports the amount owmg to them less the prompt payment discount. 17 Credit sale to Academy Diving School of 15 wetsuits at a discounted price of $250 each on terms of net 15. Cost of sales $4,000. 23 Paid Excitement Plus $4,000 of the amount owing to them. 24 Issued an adjustment note (credit note) to Academy Diving School for l wetsuit at $250 each that was not the size they required. The cost of the wetsuit to us was $200 and it was put back into inventory. 24 Purchased wetsuits from Surf Imports for $9,200 on terms of 10110, n/30. 25 Credit sale to Serious Fun ofskateboards for $0,500 (cost of sales $4,100). Terms 5110, nl3D. 27 Received and banked a cheque from Academy Diving School for the amount owing by them. 30 A repayment of $1,000 was made on the bank loan. 30 The owner cashed a cheque for $780 to pay wages to Scott Walker the sales assistant of $010 less PAYG Withholding of $30. The June transactions above have been journalised and posted. Skate 'n' Surf Trial balance as at 3|] June IUXX Account Cash at bank Accounts receivable Inventory Prepaid insurance Shep equipment (cost) Accounts payable PAYG' withholding payable Bank loan Capital Saes revenue Saies returns and ailowances Discount received Cost of sales Advertising expense Discount allowed Postage and stationery expense Wages expense 13,535 16,400 37,450 4,080 45,000 250 15,650 1,150 255 180 010 31,100 30 40,000 36,000 25,030 1,000 $134,760 $134,760 Journalise the fDHOWIng endeofrmonth adJHStments. (Note: Enter debit entries rst, 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 where dollar.) a. Depreciation Dn shop equipment for the month is 15% p.a. prime Dost (straight Fine). b. Oneetweifth of the Insurance expired. :3. Superannuation payable for the month is 10.0% of the gross wages paid. :1. Interest charged on the bank loan for the month was $154. Debit Description oxx June (Deprecaticin for the month) (Amnunt of prepaid insurance expired for June) (Super-inn uaijci n payable for June) (Interest charged tn bank loan for June)