1) Jan. 1st. Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business.2) Jan. 2ad: Taesan buys fire insurance and makes an advance payment of 6,000,000 won for the coming 6 years (useprepaid insurance account).3) Mar. 1st: Taesan gets a bank loan of 10,000,000won.4) Apr. 1st: Taesa 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 2years 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 wonas service fee.9) Oct. 20a: Yunkvoung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still notcollected.10) Nov. 20th: Taesan pays electricity bill of 200,000 won in cash.11) Nov. 25a: 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. 28h. 500,000 won is paid to the landlord for rent.14) Dec. 31:(Present) Insurance premium to be paid for the year has accrued15) Dec. 31(Present) 1/5 of the service that has been paid for in advance on Jun. 9ahas been completed. (In otherwords, 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 won17) Dec. 31:(Present) Depreciation expense for the equipment in use is 200,000 won1. What is the net income of 2012?2. If there is no dividend pay-out, what is the retain earning for 2012?

1. Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

1) Jan. 1x: Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business. 2) Jan. 2md: 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. 1t. Taesan gets a bank loan of 10,000,000won. 4) Apr. 1µ: 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. 9a: 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. 9t. 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. 20%. YunkvQung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still not collected. 10) Nov. 20th: Taesan pays electricity bill of 200,000 won in cash. 11) Nov. 25h: Interest for loan worth 400,000 won is due but it is not yet paid. 12) Dec. Sm: 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. 31«(Present) Insurance premium to be paid for the year has accrued 15) Dec. U(Present) 1/5 of the service that has been paid for in advance on Jun. 9ahas 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 pay-out, what is the retain earning for 2012?

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 7EA: Homeland Plus specializes in home goods and accessories. In order for the company to expand its...