FPT UNIVERSITY

Full name : Nguyễn Thị Mỹ Ngân

Student ID : CS171405
Class : BA1706

PRINCIPLES OF ACCOUNTING
ACC101
INDIVIDUAL ASSIGNMENT

INSTRUCTOR
Mr. Pham Thai Bao

2023
 TABLE OF CONTENT
I. Introduction :......................................................................................................................3
II. Accounting report:..........................................................................................................3
1. Transactions description:.............................................................................................4
2. Transaction analysis:...................................................................................................4
3. General journal............................................................................................................5
4. General ledger ( Post)..................................................................................................7
5. Unadjusted trial balance & Adjusted entries & Adjusted trial balance.......................8
6. Adjustments :...............................................................................................................9
7. Trial balance :............................................................................................................10
8. Income statement.......................................................................................................10
9. Statement of owner’s equity......................................................................................11
10. Balance sheet.........................................................................................................11
11. Close account:........................................................................................................12
III. Conclusion :..................................................................................................................13
IV. Reference:.....................................................................................................................13

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 BODY
I. Introduction :

- The name: Hair Salon

- The current state of the beauty industry: The beauty market is rapidly evolving and
dynamic, with new products and services appearing on the market every day.

+ Also according to the growth statistics of the beauty industry, the number of
employees in the service segment is expected to increase by 10% for barbers and
hairdressers, and estheticians and nearly 22% for the massage therapy sector in 2024.

+ The global skincare market was worth nearly $135 billion in 2018, a growth of nearly
60% over the past ten years. Skincare accounts for 60% of all profits in the beauty
industry.

+ Due to the increasing awareness of the importance of skincare, not only the beauty
needs of women but also the increasing number of men buying skin care products,
this market segment continues to grow. According to the survey of women's beauty
needs, in 2019 skin care sales increased by 5% over the previous year, in which anti-
aging and natural beauty products and services were the largest contributors.

+ According to experts, the current state of the beauty industry, the beauty industry in
general and the cosmetics industry in particular, is considered to have a strong growth
rate. The report of the Global Wellness Institute shows that the period 2015 - 2017 the
global healthcare industry grew 12.8%, from 3.7 trillion USD to 4.2 trillion USD.
6.4%/year). Spending is about $4.2 trillion, more than half of the total health spending
of $7.3 trillion.

- Business lines: Realizing that people's beauty needs are increasing day by day,
especially hairdressing + beauty salons. And after realizing the great demand from the
locals as well as the people. Therefore, I decided to open a Salon specializing in
haircuts + beauty to serve everyone.

- The influence of the industry on people in Can Tho:

 Recently, when people's living standards change, the awareness of beauty needs
increasing, and along with the development of technology, the perception of the
cosmetic industry is increasingly changing. Spa services such as skin care, body care,

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 and relaxing massage ... also become a necessity, often for relaxation and energy
recovery after stressful working hours.

II. Accounting report:

1. Transactions description:
Feb 1, I invested $5,000 in cash and $13,000 in equipment in Expressions.
Feb 2, The Expressions Company paid $70 in cash to buy furniture for the store.
Feb 3, The Expressions Company paid $100 in cash to rent space in the mall for
marketing in April
Feb 4, The company purchased $1,100 in store credit equipment
Feb 5, The company received cash from the barber service in the first week and a half
of business (end of February 15) of $2,000
Feb 7, The company pays $1,500 cash for employee salaries.
Feb 9, Expressions offers a $1,000 haircut on account.
Feb 13, Expressions received a check for $100 for services previously provided on the
account
Feb 15, Expressions paid $125 to an assistant for hours worked during opening.
Feb 17, Expressions company receives cash from services rendered in the second half
of February of $2,500.
Feb 20, The company paid a $400 installment of principal on a promissory note
signed on February 4.
Feb 22, I withdrew $900 cash for personal use.
Feb 25, The company pays the February rent of $800
Feb 27, The company pays a utility bill of $500 in February
Feb 28, The company pays insurance premiums for employees for March and April of
$1,000.

2. Transaction analysis:

Asset = Liabilities + Owner’s equity

Cash Account Equipment Supplies Prepaid Prepaid Notes Owner’s Withdrawal Revenu Expe
+ receivable + + Insurance rent payable + e - nse
capital

5,000 13,000 18,000

-70 70

-100 100

1,100 -1,100

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2,000 2,000

- 1,500
1,500

1,000 1,000

100 -100

-125 125

2,500 2,500

-400 400

-900 900

-800 800

-500 500

- 1,000
1,000

4,205 900 14,100 70 1,000 0 700 18,000 900 5,500 3,025

19,465 19,465

3. General journal

Date Acc name Dr Cr

Feb.1 Cash $5,000

Equipment $13,000

Owner's Capital $18,000

Feb.2 Supplies $70

Cash $70

Feb.3 Marketing Expense $100

Cash $100

Feb.4 Equipment $1,100

Note payable $1,100

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Feb.5 Cash $2,000

Revenue $2,000

Feb.7 Salary Expense $1,500

Cash $1,500

Feb.9 Account Receivable $1,000

Revenue $1,000

Feb.13 Cash $100

Account Receivable $100

Feb.15 Wages Expense $125

Cash $125

Feb.17 Cash $2,500

Revenue $2,500

Feb.20 Note payable $400

Cash $400

Feb.22 Owner's withdrawl $900

Cash $900

Feb.25 Rent expense 800

Cash 800

Feb.27 Utilities expense 500

Cash 500

Feb.28 Prepaid Insurance 1,000

Cash 1,000

4. General ledger ( Post)

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 Withdrawal Equipment Note payable

Date Debit Credit Date Debit Credit Date Debit Credit

Feb 900 Feb 1 13,000 Feb 4 1,100

22

900 Feb 4 1,100 Feb 20 400

Cash 14,100 700

Date Debit Credit Owner’s, Expense

Capital

Feb 1 5,000 Date Debit Credit Date Debit Credit

Feb 2 70 Feb 1 18,000 Feb 3 100

Feb 3 100 18,000 Feb 7 1,500

Feb 5 2,000 Supplies Feb 15 125

Feb 7 1,500 Date Debit Credit Feb 25 800

Feb 100 Feb 2 70 Feb 27 500

13

Feb 125 70 3,025

15

Feb 2,500
17

Feb 400 Revenue

20

Feb 900 Account Date Debit Credit

22 receivable

Feb 800 Date Debit Credit Feb 5 2,000

25

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Feb 500 Feb 9 1,000 Feb 9 1,000
27

Feb 1,000 Feb 13 100 Feb 17 2,500

28

4,205 900 5,500

Prepaid
Insurance

Date Debit Credit

Feb 28 1,000

1,000

5. Unadjusted trial balance & Adjusted entries & Adjusted trial balance

Unadjusted Trial Balance Adjustments Adjusted Trial

For the month ended February 28, 2022 Balance

Account title Dr Cr Dr Cr Dr Cr

Cash 4,205 800 3,405

Account receivable 900 900
Notes payable 700 700
Supplies 70 70
Equipment 14,100 14,100
Prepaid insurance 1,000 1,000
Revenue 5,500 5,500
Owner capital 18,000 18,000
Owner withdrawal 900 900
Marketing expense 100 100
Salaries expense 1,500 1,500
Wages expense 125 125

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Rent expense 800 800
Utilities expense 500 500
Depreciation Expense - 400 400
equipment
Accumulated Depreciation - 400 400
equipment
Prepaid rent
Total 800 800
24,200 24,200 1,200 1,200 24,600 24,600

6. Adjustments :

1. Depreciation of used equipment up to $400

Dr Depreciation Expense - equipment 400

Cr Accumulated Depreciation - equipment 400

2. The company pays the rent for April for $800

Dr Prepaid rent 800

Cr Cash 800

7. Trial balance :

Hair Salon
Trial Balance
February 28

$ Dr $ Cr

Cash 3,405
Equipment 14,100
Supplies 70

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 Account receivables 900
Notes payable 700
Revenue 5,500
Owner’s Capital 18,000
Owner’s withdrawal 900
Marketing expense 100
Utilities expense 500
Wages expense 125
Rent expense 800
Salaries expense 1,500
Depreciation Expense - equipment 400
Accumulated Depreciation - equipment 400
Prepaid rent 800
Prepaid insurance 1,000
Total $ 24,600 $ 24,600

8. Income statement

Hair Salon
Income statement
For the month end February 28

Revenue:
Revenue for the sale $5,500

Total revenues $5,500

Expenses:
Marketing expense 100
Utilities expense 500
Wages expense 125
Rent expense 800
Salaries expense 1,500
Depreciation Expense - equipment 400

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 Total expenses $3,425
Net income $2,075

9. Statement of owner’s equity

Hair Salon
Owner’s equity statement
For the month ended February 28

Owner’s capital, Feb 1

Add: Investment $18,000
Net income 2,075
$20,075
Less: Drawings 900
Owner’s capital, Feb 30 $19,175

10. Balance sheet

Hair Salon
Balance Sheet
February 28

Assets
Cash $3,405
Account receivable 900
Supplies 70
Equipment 14,100
Prepaid insurance 1,000
Prepaid rent 800
Less : Accumulated Depreciation - equipment (400)

Total assets $19,875

Liabilities and owner’s equity

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Liabilities:

Notes payable 700

Owner’s equity

Owner’s capital 19,175

Total liabilities and Owner’s equity: $19,875

11. Close account:

CLOSE REVENUE ACCOUNTS TO INCOME SUMMARY

Date Accounts name Debit Credit

28 - Feb Revenue 5,500

Income Summary 5,500

CLOSE EXPENSE ACCOUNTS TO INCOME SUMMARY

28 -Feb Income summary 3,425

Marketing expense 100

Wages expense 125

Utilities expense 500

Depreciation expense 400

Rent expenses 800

Salaries expense 1,500

CLOSE WITHDRAWALS TO OWNER’S CAPITAL

28 - Feb Owner’s capital 900

Owner’s Withdrawal 900

CLOSE INCOME SUMMARY TO OWNER’S CAPITAL

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 28 - Feb Income summary 2,075

Retained earnings 2,075

III. Conclusion :

Through the statistics of Hair Salon in February, it can be seen that their business activities
went smoothly and efficiently. When the indicators show that the business is effective, Hair
Salon net income is quite low at $ 2,075 but still shows a good signal. Then with $18,000 of
initial equity, along with net income. The company's equity last month increased to $20,075.
Although the company's debt is quite small, this shows that the company's business is good
and stable. The company should continue to maintain the business strategy to increase
business efficiency.
IV. Reference:

https://actgroup.com.vn/nghien-cuu-va-bao-cao-thi-truong-lam-dep-viet-nam-nam-
2020/

- Menu:

Menu

Service Price

Hair cutting $5

Head washing $3

Face Massage $60 /45 minute

Swedish Massage $80 /50 minute

Sports Massage $70 /40 minute

Stress relief $80 / 50 minute

Waxing $50

Nail services $10 - $100

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