Skateson Began Operations 1 June Buying Selling Skateboards Roller Blades Scooters Protect Q17760622

SkatesOn began operations on 1 June, buying and sellingskateboards, roller blades, scooters and the protective gear thatis essential when pursuing these types of sports. The structure ofthe business is that of a sole trader, with the owner being JasonKing.
Jason employed a sales assistant during the month who is to be paidfortnightly. Tax is deducted from the employee’s wages (PAYGwithholding tax) and remitted to the Australian Taxation Office(ATO) on a quarterly basis.
The business has not registered with theATO for the goods and services tax (GST) and has elected to use theaccrual basis of accounting.
Accounting recordsThe business records all transactions in the general journal. Thesetransactions are then posted to the appropriate account(s) in thegeneral ledger and the accounts receivable or accounts payablesubsidiary ledgers, where separate accounts are maintained for eachcustomer or supplier.
Chart of accountsThe chart of accounts for SkatesOn contains the accounts andaccount numbers below.

100

Cash at bank

110

Accounts receivable

120

Inventory

130

Prepaid insurance

171

Shop equipment (cost)

172

Accumulated depreciation – shopequipment

200

Accounts payable

210

Wages payable

220

PAYG withholding 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

Depreciation expense

610

Discount allowed

620

Insurance expense

630

Interest expense

640

Rent expense

650

Wages expense

Transactions

June
1

The owner opened a bank account for thebusiness with a deposit of $24,200. This is capital provided byhim.

1

Purchased shop equipment (computer,cash register, shelving etc.) from Shop Outfitters Pty Ltd for$47,400. This was paid for with a loan of $43,790 from the bank andcheque for $3,610 from the business bank account. The bank loan isrepayable over 4 years.

2

Purchased inventory (skateboards,roller blades, helmets and other protective gear) from DaintreeImporters for $18,404 on terms on net 30.

2

Paid $3,288 for a 1-year insurancepolicy covering fire, theft, and public liability.

3

Paid rent of $1,980 for the shop forJune.

6

Cash sale of a skateboard andprotective equipment for $464 (cost of sales $191).

7

Returned some protective gear toDaintree Importers that was faulty and received an adjustment note(credit note) from them for $163.

8

Credit sale to Serious Fun ofskateboards and roller blades for $6,560 (cost of sales $3,011).This customer was given terms of 5/10, n/30.

10

Purchased scooters from Scoot Importsfor $9,660 on terms of 10/10, n/30.

14

Paid Daintree Importers $5,200 of theamount owing to them.

15

Credit sale to Action World of variousinventory items for $6,435 (cost of sales $2,785). Terms net30.

16

Received a cheque from Serious Fun forthe amount owing by them after deducting the prompt paymentdiscount.

17

Paid Scoot Imports the amount owing tothem less the prompt payment discount.

20

Credit sale to Toys Plus of 33 scootersat a discounted price of $423 each on terms of net 15. Cost ofsales $5,580.  

21

Cash sale of inventory to the value of$721 (cost of sales $321).

22

Issued an adjustment note (credit note)to Action World for 5 helmets at $91 each that were not the stylethey prefer to sell. The cost of the helmets to us was $37 each andthey were put back into inventory.

24

Paid wages to James Paget the salesassistant of $530 less PAYG Withholding of $42 for the five days hehas been employed. In future he will be paid fortnightly.

27

The owner withdrew $1,020 cash from thebusiness bank account for his own personal use.

28

Purchased scooters from Scoot Importsfor $11,310 on terms of 10/10, n/30.

29

Received and banked a cheque from ToysPlus for the amount owing by them.

30

Credit sale to Serious Fun of scootersfor $4,850 (cost of sales $2,070). Terms 5/10, n/30.

30

A repayment of $930 was made on thebank loan.

The June transactions above have been journalised andposted.

Cash at bank

No. 100

Date

Details

Debit

Date

Details

Credit

June

1

Capital

24,200

June

1

Shop equipment (cost)

3,610

6

Sales revenue

464

2

Prepaid insurance

3,288

16

Accounts receivable

6,232

3

Rent expense

1,980

21

Sales revenue

721

14

Accounts payable

5,200

29

Accounts receivable

13,959

17

Accounts payable

8,694

24

Wages expense

488

27

Drawings

1,020

30

Bank loan

930

Accounts receivable

No. 110

Date

Details

Debit

Date

Details

Credit

June

8

Sales revenue

6,560

June

16

Cash at bank

6,232

15

Sales revenue

6,435

16

Discount allowed

328

20

Sales revenue

13,959

22

Sales returns and allowances

455

30

Sales revenue

4,850

29

Cash at bank

13,959

Inventory

No. 120

Date

Details

Debit

Date

Details

Credit

June

2

Accounts payable

18,404

June

6

Cost of sales

191

10

Accounts payable

9,660

7

Accounts payable

163

22

Cost of sales

185

8

Cost of sales

3,011

28

Accounts payable

11,310

15

Cost of sales

2,785

20

Cost of sales

5,580

21

Cost of sales

321

30

Cost of sales

2,070

Prepaid insurance

No. 130

Date

Details

Debit

Date

Details

Credit

June

2

Cash at bank

3,288

June

Shop equipment (cost)

No. 171

Date

Details

Debit

Date

Details

Credit

June

1

Bank loan

43,790

June

1

Cash at bank

3,610

Accounts payable

No. 200

Date

Details

Debit

Date

Details

Credit

June

7

Inventory

163

June

2

Inventory

18,404

14

Cash at bank

5,200

10

Inventory

9,660

17

Cash at bank

8,694

28

Inventory

11,310

17

Discount received

966

PAYG withholding payable

No. 220

Date

Details

Debit

Date

Details

Credit

June

June

24

Wages expense

42

Bank loan

No. 230

Date

Details

Debit

Date

Details

Credit

June

30

Cash at bank

930

June

1

Shop equipment (cost)

43,790

Capital

No. 300

Date

Details

Debit

Date

Details

Credit

June

June

1

Cash at bank

24,200

Drawings

No. 310

Date

Details

Debit

Date

Details

Credit

June

27

Cash at bank

1,020

June

Sales revenue

No. 400

Date

Details

Debit

Date

Details

Credit

June

June

6

Cash at bank

464

8

Accounts receivable

6,560

15

Accounts receivable

6,435

20

Accounts receivable

13,959

21

Cash at bank

721

30

Accounts receivable

4,850

Sales returns and allowances

No. 410

Date

Details

Debit

Date

Details

Credit

June

22

Accounts receivable

455

June

Discount received

No. 420

Date

Details

Debit

Date

Details

Credit

June

June

17

Accounts payable

966

Cost of sales

No. 500

Date

Details

Debit

Date

Details

Credit

June

6

Inventory

191

June

22

Inventory

185

8

Inventory

3,011

15

Inventory

2,785

20

Inventory

5,580

21

Inventory

321

30

Inventory

2,070

Discount allowed

No. 610

Date

Details

Debit

Date

Details

Credit

June

16

Accounts receivable

328

June

Rent expense

No. 640

Date

Details

Debit

Date

Details

Credit

June

3

Cash at bank

1,980

June

Wages expense

No. 650

Date

Details

Debit

Date

Details

Credit

June

24

Cash at bank

488

June

24

PAYG withholding payable

42

Prepare a trial balance as at 30 June and schedules of accountsreceivable and accounts payable.
(Note: Enter accounts in ascending account numberorder. Leave blank any answer fields that do not require ananswer.)
 
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."

"Order a Custom Paper on Similar Assignment! No Plagiarism! Enjoy 20% Discount"