The business has not registered with the ATO for the goods and services tax (GST) and has elected to use the accrual basis of accounting.
Transactions
June 1 The owner opened a bank account for the business with a deposit of $25,900. This is capital provided by him.
1 Purchased display stands, shelving etc. (shop equipment) from Shop Displays Pty Ltd for $32,400 and computer equipment for the shop from Computer Wizards for $3,900. These were paid for with a loan of $29,100 from the bank and cheque for $7,200 from the business bank account. The bank loan is repayable over 3 years.
1 Paid $4,570 for a 1-year insurance policy covering fire, theft, and public liability.
2 Purchased inventory (skateboards and protective gear) from Excitement Plus for $17,800 on terms on net 30. 5 Paid $1,400 to Local Newspapers for advertising for the shop for the month.
6 Cash sale of a skateboard and protective gear for $500 (cost of sales $155)
7 Purchased surfboards and wetsuits from Surf Imports for $16,700 on terms of 10/10, n/ 30.
8 Returned some protective gear to Excitement Plus that was faulty and received an adjustment note (credit note) from them for $190.
9 Credit sale to Serious Fun of skateboards and protective gear for $4,200 (cost of sales $1,760). This customer was given terms of 5/10, n/ 30.
11 Paid Surf Imports the amount owing to them less the prompt payment discount.
12 Credit sale to Surfing World of various inventory items for $6,740 (cost of sales $3,240). Terms net 30.
13 Cash purchase of stationery from Officeworks for $340.
14 Credit sale to Academy Diving School of 20 wetsuits at a discounted price of $200 each on terms of net 15. Cost of sales $2,240.
18 Received a cheque from Serious Fun for the amount owing by them after deducting the prompt payment discount.
19 Cash sale of inventory to the value of $810 (cost of sales $320)
20 Issued an adjustment note (credit note) to Academy Diving School for 1 wetsuit at $200 each that was not the size they required. The cost of the wetsuit to us was $190 and it was put back into inventory.
24 Paid Excitement Plus $4,800 of the amount owing to them.
25 Credit sale to Serious Fun of skateboards for $6,280 (cost of sales $2,400). Terms 5/10, n/ 30.
26 Purchased wetsuits from Surf Imports for $5,500 on terms of 10/10, n/30.
27 Received and banked a cheque from Academy Diving School for the amount owing by them.
30 The owner cashed a cheque for $1,760 to pay wages to Scott Walker the sales assistant of $890 less PAYG Withholding of $60, and $930 drawings for himself.
Journalise the June transactions.
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