Question
Transactions
The June transactions above have been journalised and posted. Following are the end-of-month adjustments, which are also journalised.
(Leave blank any answer fields that do not require an answer.)
Date
Description
Post
ref.
Debit
Credit
20XX
30
Depreciation
817
Accumulated depreciation - shop equipment
817
(Depreciation for the month)
30
Insurance
269
Prepaid insurance
269
(Amount of prepaid insurance expired for June)
30
Wages
367
Wages payable
367
(Wages accrued at 30 June)
30
Interest expense
182
Bank loan
182
(Interest charged to bank loan for June)
Post the above adjusting entries to the general ledger .
June 1 The owner opened a bank account for the business with a deposit of $22,700. This is capital provided by him. 1 Purchased shop equipment (computer, cash register, shelving etc.) from Shop Outfitters Pty Ltd for $49,020. This was paid for with a loan of $38,170 from the bank and cheque for $10,850 from the business bank account. The bank loan is repayable over 4 years. 2 Purchased inventory (skateboards, roller blades, helmets and other protective gear) from Daintree Importers for $19,681 on terms on net 30. 2 Paid $3,228 for a 1-year insurance policy covering fire, theft, and public liability. 3 Paid rent of $1,870 for the shop for June. 6 Cash sale of a skateboard and protective equipment for $401 (cost of sales $197). 7 Returned some protective gear to Daintree Importers that was faulty and received an adjustment note (credit note) from them for $165. 8 Credit sale to Serious Fun of skateboards and roller blades for $5,580 (cost of sales $2,659). This customer was given terms of 5/10, n/30. 10 Purchased scooters from Scoot Imports for $9,450 on terms of 10/10, n/30. 14 Paid Daintree Importers $4,920 of the amount owing to them. 15 Credit sale to Action World of various inventory items for $6,828 (cost of sales $2,691). Terms net 30. 16 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount. 17 Paid Scoot Imports the amount owing to them less the prompt payment discount. 20 Credit sale to Toys Plus of 33 scooters at a discounted price of $428 each on terms of net 15. Cost of sales $5,580. 21 Cash sale of inventory to the value of $749 (cost of sales $303). 22 Issued an adjustment note (credit note) to Action World for 5 helmets at $94 each that were not the style they prefer to sell. The cost of the helmets to us was $36 each and they were put back into inventory. 24 Paid wages to James Paget the sales assistant of $510 less PAYG Withholding of $41 for the five days he has been employed. In future he will be paid fortnightly. 27 The owner withdrew $980 cash from the business bank account for his own personal use. 28 Purchased scooters from Scoot Imports for $11,280 on terms of 10/10, n/30. 29 Received and banked a cheque from Toys Plus for the amount owing by them. 30 Credit sale to Serious Fun of scooters for $5,370 (cost of sales $2,070). Terms 5/10, n/30. 30 A repayment of $1,070 was made on the bank loan.
Explanation / Answer
It has been assumed that journal ledger are closed yearly. if it closes monthly then balance will be transfered.
Journal Ledger Date Description Ref. No. Debit Credit Balance Depreciation Account 1-Jun Opening Balance $0.00 30-Jun From Accumulated Dep. On Equipment $817.00 $817.00 Accumulated Depreciation Account 1-Jun Opening Balance $0.00 30-Jun From Depreciation $817.00 $817.00 Insurance Account 1-Jun Opening Balance $0.00 30-Jun From Prepaid Insurance $269.00 $269.00 Prepaid Insurance Account 1-Jun Opening Balance $3,228.00 30-Jun From Insurance $269.00 $2,959.00 Wages Payble Account 1-Jun Opening Balance $0.00 30-Jun From Wages $367.00 -$367.00 Bank Loan Account Opening Balance $37,100.00 30-Jun From Interest $182.00 $36,918.00
