1) Jan. 1st: Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business. 2) Jan. 2nd: Taesan buys fire insurance and makes an advance payment of 6,000,000 won for the coming 6 years (use prepaid insurance account). 3) Mar. 1st: Taesan gets a bank loan of 10,000,000won. 4) Apr. 1x: Taesan purchases equipment worth 5,000,000 won and pays 2,000,000wonin cash and the rest on credit. 5) Apr. 2nd: Taesan purchases supplies worth 5,000,000wonon credit. 6) May. 9h: Taesan writes a contract with Dong-gun Construction Co. to provide non-audit service over the coming 2 years for 20,000,000 won. 7) Jun. 9h: Non-audit service is not provided yet but Taesan receives service fee worth 10,000,000 won for 2012. 8) Aug. 16th: Taesan provides tax advisory service to Yunkyoung Co. and makes a payment request of 2,000,000 won as service fee. 9) Oct. 20th: Yunkyoung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still not collected. 10) Nov. 20t5: Taesan pays electricity bill of 200,000 won in cash. 11) Nov. 25: Interest for loan worth 400,000 won is due but it is not yet paid. 12) Dec. 5th: 5,000,000 won of loan is paid back to the creditor in cash. 13) Dec. 28t: 500,000 won is paid to the landlord for rent. 14) Dec. 31g(Present) Insurance premium to be paid for the year has accrued 15) Dec. 31g(Present) 1/5 of the service that has been paid for in advance on Jun. 9tahas been completed. (In other words, 1/5 of the service fee is to be recognized) 16) Dec. 31(Present) The ending balance of supplies on hand totals up to 4,000,000 won 17) Dec. 31(Present) Depreciation expense for the equipment in use is 200,000 won 1. What is the net income of 2012? 2. If there is no dividend pavout, what is the retain earning for 2012?
1) Jan. 1st: Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business. 2) Jan. 2nd: Taesan buys fire insurance and makes an advance payment of 6,000,000 won for the coming 6 years (use prepaid insurance account). 3) Mar. 1st: Taesan gets a bank loan of 10,000,000won. 4) Apr. 1x: Taesan purchases equipment worth 5,000,000 won and pays 2,000,000wonin cash and the rest on credit. 5) Apr. 2nd: Taesan purchases supplies worth 5,000,000wonon credit. 6) May. 9h: Taesan writes a contract with Dong-gun Construction Co. to provide non-audit service over the coming 2 years for 20,000,000 won. 7) Jun. 9h: Non-audit service is not provided yet but Taesan receives service fee worth 10,000,000 won for 2012. 8) Aug. 16th: Taesan provides tax advisory service to Yunkyoung Co. and makes a payment request of 2,000,000 won as service fee. 9) Oct. 20th: Yunkyoung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still not collected. 10) Nov. 20t5: Taesan pays electricity bill of 200,000 won in cash. 11) Nov. 25: Interest for loan worth 400,000 won is due but it is not yet paid. 12) Dec. 5th: 5,000,000 won of loan is paid back to the creditor in cash. 13) Dec. 28t: 500,000 won is paid to the landlord for rent. 14) Dec. 31g(Present) Insurance premium to be paid for the year has accrued 15) Dec. 31g(Present) 1/5 of the service that has been paid for in advance on Jun. 9tahas been completed. (In other words, 1/5 of the service fee is to be recognized) 16) Dec. 31(Present) The ending balance of supplies on hand totals up to 4,000,000 won 17) Dec. 31(Present) Depreciation expense for the equipment in use is 200,000 won 1. What is the net income of 2012? 2. If there is no dividend pavout, what is the retain earning for 2012?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![[Taesan service company] case
The following is the transaction record of Taesan Service Co. (hereinafter Taesan), an accounting and
tax advisory service provider from Jan. 1sto Dec. 31stin 2012.
1) Jan. 1st: Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business.
2) Jan. 2nd: Taesan buys fire insurance and makes an advance payment of 6,000,000 won for the coming 6 years (use
prepaid insurance account).
3) Mar. 1st: Taesan gets a bank loan of 10,000,000won.
4) Apr. 1st: Taesan purchases equipment worth 5,000,000 won and pays 2,000,000wonin cash and the rest on credit.
5) Apr. 2nd: Taesan purchases supplies worth 5,000,000wonon credit.
6) May. 9th: Taesan writes a contract with Dong-gun Construction Co. to provide non-audit service over the coming 2
years for 20,000,000 won.
7) Jun. 9th: Non-audit service is not provided yet but Taesan receives service fee worth 10,000,000 won for 2012.
8) Aug. 16th: Taesa provides tax advisory service to Yunkvoung Co. and makes a payment request of 2,000,000 won as
service fee.
9) Oct. 20th: Yunkvoung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still not
collected.
10) Nov. 20a: Taesan pays electricity bill of 200,000 won in cash.
11) Nov. 25th: Interest for loan worth 400,000 won is due but it is not yet paid.
12) Dec. Sth: 5,000,000 won of loan is paid back to the creditor in cash.
13) Dec. 28h: 500,000 won is paid to the landlord for rent.
14) Dec. 31g(Present) Insurance premium to be paid for the year has accrued
15) Dec. 31(Present) 1/5 of the service that has been paid for in advance on Jun. 9tahas been completed. (In other words,
1/5 of the service fee is to be recognized)
16) Dec. 31(Present) The ending balance of supplies on hand totals up to 4,000,000 won
17) Dec. 31(Present) Depreciation expense for the equipment in use is 200,000 won
1. What is the net income of 2012?
2. If there is no dividend payout, what is the retain earning for 2012?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c32a667-d44c-4dda-8295-c8466db327b8%2Ff5648c2b-cb02-4ef0-bba2-c6c51a41524a%2Fgulema_processed.png&w=3840&q=75)
Transcribed Image Text:[Taesan service company] case
The following is the transaction record of Taesan Service Co. (hereinafter Taesan), an accounting and
tax advisory service provider from Jan. 1sto Dec. 31stin 2012.
1) Jan. 1st: Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business.
2) Jan. 2nd: Taesan buys fire insurance and makes an advance payment of 6,000,000 won for the coming 6 years (use
prepaid insurance account).
3) Mar. 1st: Taesan gets a bank loan of 10,000,000won.
4) Apr. 1st: Taesan purchases equipment worth 5,000,000 won and pays 2,000,000wonin cash and the rest on credit.
5) Apr. 2nd: Taesan purchases supplies worth 5,000,000wonon credit.
6) May. 9th: Taesan writes a contract with Dong-gun Construction Co. to provide non-audit service over the coming 2
years for 20,000,000 won.
7) Jun. 9th: Non-audit service is not provided yet but Taesan receives service fee worth 10,000,000 won for 2012.
8) Aug. 16th: Taesa provides tax advisory service to Yunkvoung Co. and makes a payment request of 2,000,000 won as
service fee.
9) Oct. 20th: Yunkvoung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still not
collected.
10) Nov. 20a: Taesan pays electricity bill of 200,000 won in cash.
11) Nov. 25th: Interest for loan worth 400,000 won is due but it is not yet paid.
12) Dec. Sth: 5,000,000 won of loan is paid back to the creditor in cash.
13) Dec. 28h: 500,000 won is paid to the landlord for rent.
14) Dec. 31g(Present) Insurance premium to be paid for the year has accrued
15) Dec. 31(Present) 1/5 of the service that has been paid for in advance on Jun. 9tahas been completed. (In other words,
1/5 of the service fee is to be recognized)
16) Dec. 31(Present) The ending balance of supplies on hand totals up to 4,000,000 won
17) Dec. 31(Present) Depreciation expense for the equipment in use is 200,000 won
1. What is the net income of 2012?
2. If there is no dividend payout, what is the retain earning for 2012?
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