Dn Binh Minh

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 | |
|