Question

The June transactions above have been journalised and posted.

Skate ‘n’ Surf Trial balance as at 30 June 20XX
Account no.		Account		Debit		Credit
100		Cash at bank		13,840
110		Accounts receivable		15,570
120		Inventory		37,010
130		Prepaid insurance		4,560
171		Shop equipment (cost)		45,000
200		Accounts payable				25,970
210		PAYG withholding payable				60
230		Bank loan				41,100
300		Capital				38,000
400		Sales revenue				24,860
410		Sales returns and allowances		270
420		Discount received				2,100
500		Cost of sales		13,460
600		Advertising expense		1,180
620		Discount allowed		250
660		Postage and stationery expense		190
690		Wages expense		760
				$132,090		$132,090

Journalise the following end-of-month adjustments.

(Note: Enter debit entries first, followed by credit entries in the general journal. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Leave blank any answer fields that do not require an answer. Round answer to the nearest whole dollar.)

a.	Depreciation on shop equipment for the month is 10% p.a. prime cost (straight line).
b.	One-twelfth of the insurance expired.
c.	Superannuation payable for the month is 10.0% of the gross wages paid.
d.	Interest charged on the bank loan for the month was $152.

Answer 1

Journal

a	Depreciation expense	375
	Accumulated depreciation - Shop equipment		375
b	Insurance expense	380
	Prepaid insurance		380
c	Superannuation expense	76
	Superannuation payable		76
d	Interest expense	152
	Interest payable		152

Depreciation expense for the month = 45,000 x 10% x 1/12

= $375

Insurance expense for the month = 4,560 x 1/12

= $380

Superannuation payable = 10.0% of the gross wages paid.

= 760 x 10%

= $76

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