Midterm ACC101

Name ID:

A group of shareholders invested to set up a business called Binh Minh Co., who trades Mobile
phones.

1/12 Invest to set up a business $20000

1/12 borrow from B bank $5000

1/12 paid for 12-month insurance premium $1200.

2/12 purchase equipment for $3000, useful life of 5 years, salvage value = 0.

2/12 Purchase 80 mobiles for $30/unit.

3/12 Received $4000 cash in advance from customer for a work to be

provided in 4 months.

4/12 Purchase 50 mobiles for $35/unit, on credit.

5/12 purchase $150 supplies.

6/12 sold on credit 60 mobiles at $100 each. The company uses FIFO method.

7/12, customer returned 3 mobiles.

20/12 collect cash from customer for sale contract on 6/12.

31/12 Salary expense accounted for $1000, not yet paid and recorded.

31/12 inventory count showed $15 supplies still unused.

Prepare General journal for the company

Prepare Income Statement for the month of December

Calculate ending balances of Cash, Account receivable, Inventories, Account payable, Unearned
revenue, given that beginning balances of these accounts were 0.