SkatesOn Statement of profit or loss for the period 1 June to 30 June 20XX Reven
ID: 2491445 • Letter: S
Question
SkatesOn
Statement of profit or loss
for the period 1 June to 30 June 20XX
Revenue
Sales revenue
Sales income
$31,087
Less: Sales returns and allowances
500
Net sales revenue
30,587
Less: Cost of sales
14,073
Gross profit
16,514
Other revenue:
Discount received
935
17,449
Expenses
Depreciation
$773
Discount allowed
326
Insurance
284
Interest expense
179
Rent
2,150
Wages
900
Total expenses
4,612
Net profit / (loss)
$12,837
(a)
Journalise end-of-year closing entries.
TransactionsJune 1 The owner opened a bank account for the business with a deposit of $24,700. This is capital provided by him. 1 Purchased shop equipment (computer, cash register, shelving etc.) from Shop Outfitters Pty Ltd for $46,380. This was paid for with a loan of $38,570 from the bank and cheque for $7,810 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 $17,013 on terms on net 30. 2 Paid $3,408 for a 1-year insurance policy covering fire, theft, and public liability. 3 Paid rent of $2,150 for the shop for June. 6 Cash sale of a skateboard and protective equipment for $430 (cost of sales $192). 7 Returned some protective gear to Daintree Importers that was faulty and received an adjustment note (credit note) from them for $136. 8 Credit sale to Serious Fun of skateboards and roller blades for $6,520 (cost of sales $2,693). This customer was given terms of 5/10, n/30. 10 Purchased scooters from Scoot Imports for $9,350 on terms of 10/10, n/30. 14 Paid Daintree Importers $5,140 of the amount owing to them. 15 Credit sale to Action World of various inventory items for $6,327 (cost of sales $3,008). 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 30 scooters at a discounted price of $414 each on terms of net 15. Cost of sales $6,070. 21 Cash sale of inventory to the value of $710 (cost of sales $280). 22 Issued an adjustment note (credit note) to Action World for 5 helmets at $100 each that were not the style they prefer to sell. The cost of the helmets to us was $42 each and they were put back into inventory. 24 Paid wages to James Paget the sales assistant of $540 less PAYG Withholding of $43 for the five days he has been employed. In future he will be paid fortnightly. 27 The owner withdrew $950 cash from the business bank account for his own personal use. 28 Purchased scooters from Scoot Imports for $12,960 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 $4,680 (cost of sales $2,040). Terms 5/10, n/30. 30 A repayment of $1,070 was made on the bank loan.
The end-of-month adjustments are below.
a. Depreciation on shop equipment for the month is 20% p.a. prime cost (straight line). b. One-twelfth of the insurance expired. c. Wages payable at 30 June were $360. d. Interest charged on the bank loan for the month was $179.
The transactions above have been journalised and posted. The statement of profit or loss for June is below.
SkatesOn
Statement of profit or loss
for the period 1 June to 30 June 20XX
Revenue
Sales revenue
Sales income
$31,087
Less: Sales returns and allowances
500
Net sales revenue
30,587
Less: Cost of sales
14,073
Gross profit
16,514
Other revenue:
Discount received
935
17,449
Expenses
Depreciation
$773
Discount allowed
326
Insurance
284
Interest expense
179
Rent
2,150
Wages
900
Total expenses
4,612
Net profit / (loss)
$12,837
Explanation / Answer
END OF YEAR CLOSING ENTRIES: Date Account titles and explanations Debit Credit Income summary 19185 cost of sales 14073 depreciation expense 773 disocunt allowed 326 insurance expense 284 interest expense 179 rent expense 2150 wages expense 900 sales returns & allowances 500 sales income 31087 discount received 935 Income summary 32022 income summary 12837 retained earnings 12837
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