Dn Binh Minh

Topics: Revenue, Income statement, Income Pages: 5 (433 words) Published: March 18, 2013
A group of shareholders invested to set up a business called Binh Minh Co., who trades Mobile phones.

1. 1/12 Invest to set up a business \$8000

2. 1/12 borrow from B bank \$5000

3. 1/12 paid in advance \$1200 to rent a space in Dec and Jan.

4. 2/12 purchase equipment for \$2100, useful life of 5 years, salvage value = 0.

5. 2/12 Purchase 100 mobiles for \$50/unit, paid 60% in cash, the balance will be paid later

6. 3/12 Received \$2000 cash in advance from customer for a work to be

provided in Dec and Jan.

7. 5/12 purchase \$50 supplies.

8. 6/12, sold on credit 50 mobiles at \$80 each.

9. 7/12, customer returned 3 defective mobiles.

10. 10/12 Customer paid for the amount they owed on 6/12.

11. 31/12 utility expense accounted for \$50, not yet paid and recorded.

12. 31/12 Paid interest rising from the bank loans for \$30.

13. 31/12 inventory count showed \$5 supplies still unused.

14. 31/12 Completed 30% work described in (6).

Prepare general journal for Binh Minh Co, in December.

Prepare financial statements for Binh Minh Co. for December.

| | |Dr |Cr | |1/12 |Cash |8000 | | | |Contributed capital | |8000 | |1/12 |Cash |5000 | | | |Loan | |5000 | |1/12 |Prepaid rent |1200 | | | |Cash | |1200 | |2/12 |Equipment |2100 | | | |Cash | |2100 | |2/12 |Inventories |5000 | | | |Cash | |3000 | | |Account payable | |2000 | |3/12 |Cash |2000 | | | |Unearned revenue | |2000 | |5/12 |supplies |50 | | | |Cash | |50 | |6/12 |Account receivable |4000 | | | |Sale revenue | |4000 | | |COGS |2500 | | | |Inventories | |2500 | |7/12 |Sales returns and allowances |240...

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