Group 3

Lecturer: Đỗ Thị Thanh Huyền

up 3
Thanh Huyền
GROUP MEMBERS
Nguyễn Minh Hải
Phạm Văn Tấn
Phạm Thị Thanh Ngân
Dư Thị Kim Anh
Nguyễn Hiệp Thức

BUSINESS SUMMARY
Name:
Date of establishment
Product:
Target customer segmen
Inventory costing method
A.R write off method
 ASSIGNED JOB
Trial balance - Adjusting table
Journal entry - T account - Inventory costing table
Journal entry - T account - Inventory costing table
Closing entries - Financial statement
Closing entries - Financial statement - Introduction

S SUMMARY
P.A.S.S
01/01/2020
T-shirt
Retailers
FIFO
Allowance method
 P.A.S.S Compan
Financial Statement
Income statement
Account January
Revenue
Revenue 29000
Cost of good sold 12500
Gross profit 16500
Operating expense
Salary expense 4600
Depreciation expense - equipment 500
Supply expense 2000
Delivery expense
Total operating expense 7100
General and administrative expense
Bad debts expense
Insurance expense 200
Rental expense 2000
Total general and administrative expense 2200
Total operating expense 9300
Net income 7200

Statement of owner's equity

Account January
Beginning balance 0
Investment by owner 100000
Net income 7200
Owner's withdrawal 0
Total owner's equity 107200

Balance sheet
Accounts January
Assets
Current assets
Cash 60400
Account receivable 9000
Allowance for doubtful accounts
Merchandise inventory 13800
 Prepaid insurance 4600
Prepaid rent 4000
Non-current assets
Supply 8000
Equipment 20000
Accumulated depreciation-equipment -500
Total assets 119,300
Liabilities
Current liabilities
Account payable 6300
Salary payable 800
Unearned revenue 5000
Owner's equity
P.A.S.S capital 100000
Withdrawal
Retained earnings 7200
Total liabilities and equity 119300
S Company
ial Statement
me statement
February March

84500 36000
25150 12500
59350 23500

4000 4200
500 500
2000 2000
150
6500 6850

4000
200 200
2000 2000
6200 2200
12700 9050
46650 14450

t of owner's equity
February March
107200 133850
0 0
46650 14450
-20000
133850 148300

lance sheet
February March

66800 67390
49500 40500
-4000 0
8650 13910
4400 4200
2000 0

6000 4000
19500 19000
-500 -500
152350 148500

18300 0
200 200
0 0

107200 133850
-20000 0
46650 14450
152350 148500
Date

Jan.1
Jan.3

Jan.5

Jan.10
Jan.12
Jan.17
Jan.21
Jan.23
Jan.27
Jan.28
Jan.31
Transactions

Đ.C.N invested
P.A.S.S P.A.S.S
paid $20,000 for$100,000 as Knowing
equipment. an ownerthat
contribution
this equipment is expected to use in 2 years and expected salva

P.A.S.S paid $10,000 for supply

P.A.S.S purchased from A.I 250 at $40 of merchandise inventory for cash.
P.A.S.S pays $6,000 cash for 3-month rent.
P.A.S.S pays $4,800 cash for 2018 insurance.
P.A.S.S sold for S.T 150 of $15,000 merchandise, FOB shipping point
P.A.S.S purchased from A.I 200 at $50 per merchandise inventory for cash.
P.A.S.S sold for B.S 100 at $9,000 of merchandise on account, FOB shipping point
P.A.S.S purchased from I.B 200 at $35 per merchandise inventory on account.
P.A.S.S returned 20 merchandise inventory purchased from I.B in Jan.21
P.A.S.S paid employee $3800 for 19-day working in January
P.A.S.S sold for S.T 50 of $5,000 merchandise, FOB shipping point
P.A.S.S received $5000 from B.S for selling 50 merchandise inventory in Feb.15 and 50 merchandise in Feb.20
P.A.S.S had used $2000 supply in January
 Journal entry
Date Account Debit Credit Date
value is 8,000 at the endJan
of 1year
Cash2th. 100,000 3-Jan
Owner's Capital 100,000 10-Jan
12-Jan
Jan 3 Supply 10,000
Cash 10,000 17-Jan
Equipment 20,000 21-Jan
Cash 20,000
Merchandise Inventory 10,000 23-Jan
Cash 10,000
28-Jan
Jan 5 Prepaid Rental Expense 6,000 31-Jan
Cash 6,000
Prepaid Insurance Expense 4,800
Cash 4,800

Jan 10 Cash 15,000

Revenue 15,000
COGS 6,000
Merchandise Inventory 6,000

Jan 12 Merchandise Inventory 10,000

Cash 10,000

Jan 17 Account receivable-B.S 9,000

Revenue 9,000
COGS 4,000
Merchandise Inventory 4,000

Jan 21 Merchandise Inventory 7,000

Account payable-I.B 7,000

Jan 23 Account payable-I.B 700

Merchandise Inventory 700

Jan 27 Salary Expense 3,800

Cash 3800

Jan 28 Cash 5,000

Revenue 5,000
 COGS 2,500
Merchandise Inventory 2,500

Jan 31 Cash 5000

Unearned revenue 5,000

Ending Balance 218,800 218800

 FIFO
Activity Q Cost per unit Total cost Date
Purchased 250 40 10,000 31-Jan
COGS 150 6,000
Purchased 200 50 10,000
Goods available for sale 300
COGS 100 4,000
Purchased 200 35 7,000
Goods available for sale 400
Returns and allowance 20 35 700
Goods available for sale 380
COGS 50 2,500
Ending Balance 330 13,800
 Adjusting entry
Activity Account
Supplyhad
P.A.S.S purchased $10,000 for supply.During the month,company Expense
used $2000 supply in Supply

P.A.S.S spent $4,800 cash on 12-month insurance for 2020,which

Insurance expense
is paid in advance in January 5th and adjusting entries are made at the
end of each month Prepaid Insurance Expense

Rental expense
On Jan 5th, P.A.S.S paid $6,000 cash for 3-month rent in a
Prepaid rental expense

P.A.S.S paid $20,000 for equipment. Knowing that this equipment

Depreciation equipment
is expected to use in 2 years and expected salvage value is 8,000
at the end of year 2th. Accumulated depreciation-equipment

From 27/1 until month-end is 4 working days. 31/1, the Salary expense
employee has earned salaries of 800.They will not be paid
until 27/2 Salary Payable
 T acc
Dr Cr Cash
2,000 100,000
2,000 15,000 10,000
5,000 20,000
200 5,000 10,000
200 6,000
4,800
2,000 10,000
2,000 3,800
125,000 64,600
500 60,400
on-equipment 500
Merchandise Inventory
800 10,000 6000
800 10,000 4,000
7,000 2,500
700
27,000 13200
13,800

Supply
10,000
10,000 0
10,000

Equipment
20,000
20,000 0
20,000

Account Recievable
9,000
9,000 0
9,000

Prepaid Insurance Expense

4,800
4,800 0
4,800
Prepaid Rental Expense
6,000
6,000 0
6,000

COGS
6,000
4000
2500
12,500
12,500
 T account
Account Payable Owner's capital
7,000 100,000
700 100,000
700 7,000 100,000
6,300 Revenue
15,000
Unearned revenue 9,000
5,000 5,000
5,000 0 29000
5,000 29,000

Salary expense
3,800
3,800 0
3,800
 P.A.S.S Company : Jan 31,2020
TRIAL BALANCE
Unadjusted Trial Balance Adjustment Adjusted Trial Balance
Account Title Dr Cr Dr Cr Dr
Cash 60,400 60,400
Account Receivable 9,000 9,000
Supply 10,000 2000 8,000
Prepaid Insurance 4,800 200 4,600
Prepaid Rental 6,000 2,000 4,000
Merchandise Inventory 13,800 13,800
Equipment 20,000 20,000
Accumulated depreciation 500
Account Payable 6,300
Salary payable 800
Unearned Revenue 5,000
P.A.S.S, capital 100,000
Revenue 29,000
Cost of goods sold 12500 12500
Depreciation equipment 500 500
Salary expense 3,800 800 4,600
Insurance Expense 200 200
Rental Expense 2,000 2,000
Supply Expense 2,000 2,000
Total 140,300 140,300 5500 5500 141600
 Closing entries

Date Account
Adjusted Trial Balance 31/01 Revenue
Cr Income summary
To close revenue accounts to income summary

31/01 Income summary

Cost of goods sold
Depreciation expense-equipment
Salary expense
Insurance expense
500 Rental expense
6,300 Supply expense
800 To close expense accounts to income summary
5,000
100,000 31/01 Income summary
29,000 Retained earnings
To close income summary to owner's capital

31/01 P.A.S.S capital

Owner's withdrawal
To close withdrawals to owner's capital

141600
ntries

Debit Credit
29000
29000
o income summary

21800
12500
500
4600
200
2000
2000
o income summary

7200
7200
owner's capital

0
0
Date

Feb.3
Feb.5
Feb.8
Feb.10
Feb.15
Feb.20

Feb.21
Feb.25
Feb.27
Feb.28
Transactions

P.A.S.S purchased from A.I 200 at $40 per merchandise inventory for cash.
P.A.S.S received from B.S $9,000 for selling merchandise inventory in Jan.17
Đ.C.N withdraws $20,00 cash from P.A.S.S for personal use.
P.A.S.S sold for S.T 300 of $30,000 merchandise, FOB shipping point
P.A.S.S delivered to B.S 50 inventory for the deal in Jan.31
P.A.S.S delivered to B.S the rest inventory for the deal in Jan.31
P.A.S.S had sales on credit of 100 at $90 per merchandise inventory for B.S, the due date is Mar.20
P.A.S.S purchased from I.B 400 at $30 per merchandise inventory on account, in term of 2/15,n/30, FOB destinatio
P.A.S.S sold for B.S 270 at $40,500 of merchandise on account in term of 1/30,n/60, FOB shipping point
P.A.S.S paid employee $4600 for 23-day working from Jan.28 to Feb.27
P.A.S.S estimates that $4000 of its account receivable from selliing merchandise for B.S in Feb.20 will prove uncoll
P.A.S.S had used $2000 supply in February
 Journal entry
Date Account Debit Credit
Feb 3 Merchandise Inventory 8,000
Cash 8,000

Feb 5 Cash 9,000

Account receivable-B.S 9,000

8-Feb Owner's withdrawal 20,000

2/15,n/30, FOB destination. Cash 20,000
shipping point
10-Feb Cash 30,000
n Feb.20 will prove uncollectible Revenue 30,000
COGS 12,750
Merchandise Inventory 12,750

Feb 20 Account receivable - B.S 9,000

Revenue 9,000
COGS 4,000
Merchandise Inventory 4,000

21-Feb Merchandise Inventory 12,000

Account payable-I.B 12,000

25-Feb Account receivable-B.S 40,500

Revenue (under term of 1/30, n/60) 40,500
COGS 8,400
Merchandise Inventory 8,400

27-Feb Salary Payable 800

Salary Expense 3,800
Cash 4,600

Ending Balance 158,250 158250

 FIFO
Date Activity Q Cost per unit Total cost
1-Feb Beginning balance 330 13,800
3-Feb Purchased 200 40 8,000
Goods available for sale 530
10-Feb COGS 300 12750
15-Feb COGS 50 1,850
20-Feb COGS 50 2,000
20-Feb COGS 100 4,000
21-Feb Purchased 400 30 12,000
Goods available for sale 430
25-Feb COGS 270 8400
29-Feb Ending balance 160 4800
 Adjusting entry
Date Activity
15-Feb P.A.S.S delivered to B.S 50 inventory for the deal in Jan.31

20-Feb
P.A.S.S delivered to B.S the rest inventory for the deal in
Jan.31

28-Feb P.A.S.S spent $4,800 cash on 12-month insurance for 2020,which

is paid in advance in January 5th and adjusting entries are made at the
end of each month
P.A.S.S paid $6,000 cash for 3-month rent in advance

P.A.S.S had continually used $2000 supply in February

P.A.S.S paid $20,000 for equipment. Knowing that this equipment is
expected to use in 2 years and expected salvage value is 8,000 at the
end of year 2th.
P.A.S.S paid employee $4600 for 23-day working from Jan.28
to Feb.27
P.A.S.S estimates that $4000 of its account receivable from
selliing merchandise for B.S in Feb.20 will prove uncollectible
sting entry
Account Dr Cr
Unearned revenue 2500
Revenue 2500
COGS 1850
Merchandise Inventory 1850

Unearned revenue 2500

Revenue 2500
COGS 2000
Merchandise Inventory 2000

Insurance expense 200

Prepaid Insurance Expense 200
Rental expense 2,000
Prepaid rental expense 2,000
Supply expense 2,000
Supply 2,000
Depreciation equipment 500
Accumulated depreciation-equipment 500
Salary expense 200
Salary Payable 200
Bad debt expense 4000
Allowance for doubtful account 4000
 T account
Cash Salary Payable Owner's capital
60,400 8,000 800
9000 20,000 800
30000 4,600 800
99,400 32,600
66,800 Account Payable Owner's withdrawal
6,300 20,000
Supply 12,000 20,000
10,000 0 18,300 20,000
10,000 0 18,300
10,000 Revenue
Unearned revenue
Equipment 5,000
20,000 5,000
20,000 0 5,000
20,000 0

Prepaid Insurance Expense

4,800 Salary Expense
4,800 0 3,800
4,800 3,800
7,600
Prepaid Rental Expense 7,600
6,000
6,000 0
6,000

Merchandise Inventory
13,800
8000 12,750
12000 4,000
8,400
33,800 25,150
8,650

COGS
12,500
12,750
4000
8400
 37,650
37,650

Account Receivable
9,000 9,000
9,000
40,500
58,500 9000
49,500
 Owner's capital P.A.S.S Company : Feb 29,2
100,000 TRIAL BALANCE
100,000 Unadjusted Trial Balance
100,000 Account Title Dr Cr
Cash 66,800
Owner's withdrawal Account Receivable 49,500
Allowance for doubtful account
Supply 8,000
Prepaid Insurance 4,600
Prepaid Rental 4,000
Revenue Merchandise Inventory 8,650
29,000 Equipment 19500
30,000 Accumulated depreciation
9,000 Account Payable 18,300
40,500 Salary payable 0
108,500 Unearned Revenue 5,000
108,500 Owner's withdrawal 20,000
P.A.S.S, capital 107,200
Salary Expense Revenue 79,500
Cost of goods sold 25150
Bad debt expense
0 Depreciation equipment
Salary expense 3,800
Insurance Expense
Rental Expense
Supply Expense
Total 210000 210000
S.S Company : Feb 29,2020
TRIAL BALANCE Date
Adjustment Adjusted Trial Balance 29/02
Dr Cr Dr Cr
66,800
49,500
4000 4000 29/02
2,000 6,000
200 4,400
2,000 2,000
8,650
19500
500 500
18,300
200 200
5,000 0
20000 29/02
107,200
5,000 84,500
25150
4000 4000 29/02
500 500
200 4,000
200 200
2,000 2000
2,000 2000
13900 13900 214,700 214700
 Closing entries

Account Debit Credit

Revenue 84500
Income summary 84500
To close revenue accounts to income summary

Income summary 37350

Cost of goods sold 25150
Depreciation expense-equipment 4000
Salary expense 200
Insurance expense
Rental expense 2000
Supply expense 2000
Bad debts expense 4000
To close expense accounts to income summary

Income summary 47150

Retained earnings 47150
To close income summary to owner's capital

P.A.S.S capital 20000

Owner's withdrawal 20000
To close withdrawals to owner's capital
Date Transactions
Mar.4 P.A.S.S purchased from A.I 200 at $55 per merchandise inventory for cash.

Mar.10 P.A.S.S paid I.B the amount due on the purchase of Feb.21
Mar.12 P.A.S.S sold for S.T 300 of $36000 merchandise, FOB destination
P.A.S.S paid $150 for shipping merchandise to S.T
Mar.15 P.A.S.S purchased from A.I 200 per $35 of merchandise inventory for cash.
Mar.20 B.S paid only $5000. The company must use allowance account to finish account receivable
Mar.27 P.A.S.S paid employee $4200 for 21-day working from Feb.28 to Mar.27
Mar.31 P.A.S.S paid I.B the amount due on the purchase of Jan.21
P.A.S.S had used $2000 supply in March
 Journal entry
Date Account Debit Credit

March 4 Merchandise inventory 11,000

Cash 11,000

Mar 10 Account payable-I.B 12,000

o finish account receivable Merchandise inventory 240
Cash 11,760

Mar 12 Cash 36,000

Revenue 36,000
COGS 12,500
Merchandise inventory 12,500
Delivery expense 150
Cash 150

Mar 15 Merchandise inventory 7,000

Cash 7,000

Mar 20 Cash 5,000

Account receivable-B.S 5000
Allowance for doubtful accou 4000
Account Receivable-B.S 4000

Mar 27 Salary expense 4,000

Salary Payable 200
Cash 4,200

Mar 31 Account payable 6,300

Cash 6,300

Ending balance 98,150 98150

 FIFO
Date Activity Q Cost per unit Total cost Date

1-Mar Beginning balan 160 4800 Mar.31

4-Mar Purchased 200 55 11000
Goods available 360
12-Mar COGS 300 12500
15-Mar Purchased 200 35 7000
Goods available 260
31-Mar Shrinkage 20 35 700
Ending Balance 240 9600
 Adjusting entry
Activity Account Dr
P.A.S.S spent $4,800 cash on 12-month insurance for 2020,
Insurance
which is paid in advance in January 5th and adjusting entries are expense 200
made at the end of each month Prepaid Insurance Expense

Rental expense 2,000

P.A.S.S paid $6,000 cash for 3-month rent in advance
Prepaid rental expense

Supply expense 2,000

P.A.S.S had used $2000 supply in March
Supply

P.A.S.S paid $20,000 for equipment. Knowing that this Depreciation equipment 500
equipment is expected to use in 2 years and expected
salvage value is 8,000 at the end of year 2th. Accumulated depreciation-equiupment
 T account
Cr Cash Account Payable

66,800 11,000
200 36,000 11,760 12,000
5,000 150 6,300
7,000 18,300
2,000 4,200 0
6,300
107,800 40,410 Salary Payable
67,390 800
2,000 200
Supply 1,000
10,000 1,000
500 10,000 0
10,000 Unearned revenue

Equipment
20,000
20,000 0
20,000

Prepaid Insurance Expense

4,800
4,800 0
4,800

Prepaid Rental Expense

6,000
6,000 0
6,000

Merchandise Inventory
8,650
11,000 240
7,000 12,500
26,650 12,740
13,910

COGS
37,650
 12,500
50,150
50,150

Account Recievable
49,500
5,000
4,000
49,500 9,000
40,500

Allowance for doubtful account

4,000
4,000 0
4,000
 T account
Account Payable Owner's capital

18,300 100,000
100,000
100,000
18,300
Owner's withdrawal
20,000
Salary Payable 20,000
20,000

0 Revenue
108,500
36,000
Unearned revenue 0 144,500
5,000 144,500
5,000
5,000 Salary expense
7,600
4,000
11,600 0
11,600

Delivery Expense
150
150 0
150
 P.A.S.S Company : March 31,2020
TRIAL BALANCE
Unadjusted Trial Balance Adjustment Adjusted Trial Balance
Account Title Dr Cr Dr Cr Dr
Cash 67,390 67,390
Account Receivable 40,500 40,500
Allowance for doubtful account 0
Supply 6,000 2,000 4,000
Prepaid Insurance 4,400 200 4,200
Prepaid Rental 2,000 2,000 0
Merchandise Inventory 13,910 13,910
Equipment 19,000 19,000
Accumulated depreciation 500
Account Payable 0
Salary payable 0 200
P.A.S.S, capital 133,850
Revenue 36,000
Cost of goods sold 12,500 12,500
Depreciation equipment 500 500
Delivery Expense 150 150
Salary expense 4,000 200 4,200
Insurance Expense 200 200
Rental Expense 2,000 2,000
Supply Expense 2,000 2,000
Total 169,850 169850 4900 4900 170,550
 Closing entries

Date Account
Adjusted Trial Balance 31/03 Revenue
Cr Income summary
To close revenue accounts to income summary

0 31/03 Income summary

Cost of goods sold
Depreciation expense-equipment
Salary expense
Insurance expense
Rental expense
500 Supply expense
0 Delivery expense
200 To close expense accounts to income summary
133,850
36,000 31/03 Income summary
Retained earnings
To close income summary to owner's capital

31/03 P.A.S.S capital

Owner's withdrawal
To close withdrawals to owner's capital

170550
g entries

Debit Credit
36000
36000
income summary

21550
12500
500
4200
200
2000
2000
150
o income summary

14450
14450
owner's capital

0
0