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question transactions june 1 the owner opened a bank account for thebusiness with a 4282523

Question

Transactions

June

1

 

The owner opened a bank account for thebusiness with a deposit of $22,700. This is capital provided byhim.

 

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 andcheque for $10,850 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 $19,681 on terms on net 30.

 

2

 

Paid $3,228 for a 1-year insurancepolicy covering fire, theft, and public liability.

 

3

 

Paid rent of $1,870 for the shop forJune.

 

6

 

Cash sale of a skateboard andprotective equipment for $401 (cost of sales $197).

 

7

 

Returned some protective gear toDaintree Importers that was faulty and received an adjustment note(credit note) from them for $165.

 

8

 

Credit sale to Serious Fun ofskateboards 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 Importsfor $9,450 on terms of 10/10, n/30.

 

14

 

Paid Daintree Importers $4,920 of theamount owing to them.

 

15

 

Credit sale to Action World of variousinventory items for $6,828 (cost of sales $2,691). 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 $428 each on terms of net 15. Cost ofsales $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 stylethey prefer to sell. The cost of the helmets to us was $36 each andthey were put back into inventory.

 

24

 

Paid wages to James Paget the salesassistant of $510 less PAYG Withholding of $41 for the five days hehas been employed. In future he will be paid fortnightly.

 

27

 

The owner withdrew $980 cash from thebusiness bank account for his own personal use.

 

28

 

Purchased scooters from Scoot Importsfor $11,280 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 $5,370 (cost of sales $2,070). Terms 5/10, n/30.

 

30

 

A repayment of $1,070 was made on thebank loan.

 

The June transactions above have been journalised and posted.Following are the end-of-month adjustments, which are alsojournalised.

(Leave blank any answer fields that do not require ananswer.)

a.

 

Depreciation on shop equipment for the month is 20% p.a. primecost (straight line).

b.

 

One-twelfth of the insurance expired.

c.

 

Wages payable at 30 June were $367.

d.

 

Interest charged on the bank loan for the month was $182.

 

Date

Description

Post

ref.

Debit

Credit

20XX

 

 

 

 

 

June

30

Depreciation

 

817

 

 

 

    Accumulated depreciation – shopequipment

 

 

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 .

 

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