ABC Trading & Service Co. Ltd., established in 2010, specializes in trading product X in mobile phone. The company uses a perpetual inventory system, first-in-first-out (FIFO), and straight-line depreciation. Beginning balance of accounts in May 1, 2023 are listed as follow / Accounts / Amount / (VND) Cash/ Notes payable / Accounts receivable / Accounts payable / Equipment/ Merchandise inventories / Units / 1,000 units X; unit price 800,000,000 5,000,000,000 100,000,000 19,000,000,000 30,000,000,000 30,000,000,000 Owner's Capital/ Accumulated Depreciation / 30,000,000 The following are transactions incurred in May 2023. On May 1, NGUYEN KIM Company had 1,000 units of product X (Merchandise inventory) on hand, at a cost of 30,000,000VND each. All purchases and sales are on account. A record of inventory transactions for the month of May for the company is as follows: May 5, purchased 5,000 units @ 32,000,000 VND per May 10, sold 4,000 units @ 45,000,000 VND per unit 36,870,000,000 May 16 purchased 4,500 units @ 35,000,000VNDper unit May 20 sold 5,000 units @ 53,000,000 VND per May 29 purchased 3,500 units @ 34,000,000 VND per unit 1. On May 1, hired an employee to start working the following month 2. On May 7, collected cash from the customer for the beginning Accounts receivable, 120,000,000 VND 3. On May 7, paid cash to rent a conference hall for a customer event of 30,000,000 VND. 4. On May 12, paid cash to the supplier for the beginning A/P, 500,000,000 VND 5. On May 18, the owner invested in the business 900,000,000 VND cash. 6. On May 20, paid cash for utility expenses (electronic, water, telephone) at the administration division of 100,000,000 VND. 7. On May 28, the company was considering signing a sale contract to sell merchandise to client C according to the delivery method to FOB destination: 500 units x 40,000,000 VND per unit. 8. On May 30, paid salaries for all departments of 110,000,000 VND. 9. On May 30, accrued depreciation expense of 65,000,000 VND. 10. On May 30, paid 10,000,000 VND cash for loan interest. The loan interest paid monthly. 11. On May 31, paid in purchasing equipment: invoice price, 200,000,000VND; shipping, 30,000,000 VND; installation and testing, 50,000,000VND; one-year insurance policy, vnd 12,000,000VND. 12. On May 31, Determine the profit after tax. Assume that a corporate income tax rate is 20%. Yêu cầu: 13. Prepare a tabular analysis of the effects of the above transactions from 1st to May 30 on the accounting equation 14. Record the above transactions to the General Journal.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC Trading & Service Co. Ltd., established in 2010, specializes in trading product X in mobile phone. The company uses a
perpetual inventory system, first-in-first-out (FIFO), and straight-line depreciation.
Beginning balance of accounts in May 1, 2023 are listed as follow /
Accounts /
Amount / (VND)
Cash/
Notes payable /
Accounts receivable /
Accounts payable /
Equipment/
Merchandise inventories /
Units / 1,000 units X; unit price
800,000,000
5,000,000,000
100,000,000
19,000,000,000
30,000,000,000
30,000,000,000
Owner's Capital/
Accumulated Depreciation /
30,000,000
The following are transactions incurred in May 2023.
On May 1, NGUYEN KIM Company had 1,000 units of product X (Merchandise inventory) on hand, at a cost of
30,000,000VND each. All purchases and sales are on account. A record of inventory transactions for the month of May for
the company is as follows:
May 5, purchased 5,000 units @ 32,000,000 VND per
May 10, sold 4,000 units @ 45,000,000 VND per unit
36,870,000,000
May 16 purchased 4,500 units @ 35,000,000VNDper unit
May 20 sold 5,000 units @ 53,000,000 VND per
May 29 purchased 3,500 units @ 34,000,000 VND per unit
1. On May 1, hired an employee to start working the following month
2. On May 7, collected cash from the customer for the beginning Accounts receivable, 120,000,000 VND
3. On May 7, paid cash to rent a conference hall for a customer event of 30,000,000 VND.
4. On May 12, paid cash to the supplier for the beginning A/P, 500,000,000 VND
5. On May 18, the owner invested in the business 900,000,000 VND cash.
6. On May 20, paid cash for utility expenses (electronic, water, telephone) at the administration division of 100,000,000
VND.
7. On May 28, the company was considering signing a sale contract to sell merchandise to client C according to the
delivery method to FOB destination: 500 units x 40,000,000 VND per unit.
8. On May 30, paid salaries for all departments of 110,000,000 VND.
9. On May 30, accrued depreciation expense of 65,000,000 VND.
10. On May 30, paid 10,000,000 VND cash for loan interest. The loan interest paid monthly.
11. On May 31, paid in purchasing equipment: invoice price, 200,000,000VND; shipping, 30,000,000 VND; installation
and testing, 50,000,000VND; one-year insurance policy, vnd 12,000,000VND.
12. On May 31, Determine the profit after tax. Assume that a corporate income tax rate is 20%. Yêu cầu:
13. Prepare a tabular analysis of the effects of the above transactions from 1st to May 30 on the accounting equation
14. Record the above transactions to the General Journal.
Transcribed Image Text:ABC Trading & Service Co. Ltd., established in 2010, specializes in trading product X in mobile phone. The company uses a perpetual inventory system, first-in-first-out (FIFO), and straight-line depreciation. Beginning balance of accounts in May 1, 2023 are listed as follow / Accounts / Amount / (VND) Cash/ Notes payable / Accounts receivable / Accounts payable / Equipment/ Merchandise inventories / Units / 1,000 units X; unit price 800,000,000 5,000,000,000 100,000,000 19,000,000,000 30,000,000,000 30,000,000,000 Owner's Capital/ Accumulated Depreciation / 30,000,000 The following are transactions incurred in May 2023. On May 1, NGUYEN KIM Company had 1,000 units of product X (Merchandise inventory) on hand, at a cost of 30,000,000VND each. All purchases and sales are on account. A record of inventory transactions for the month of May for the company is as follows: May 5, purchased 5,000 units @ 32,000,000 VND per May 10, sold 4,000 units @ 45,000,000 VND per unit 36,870,000,000 May 16 purchased 4,500 units @ 35,000,000VNDper unit May 20 sold 5,000 units @ 53,000,000 VND per May 29 purchased 3,500 units @ 34,000,000 VND per unit 1. On May 1, hired an employee to start working the following month 2. On May 7, collected cash from the customer for the beginning Accounts receivable, 120,000,000 VND 3. On May 7, paid cash to rent a conference hall for a customer event of 30,000,000 VND. 4. On May 12, paid cash to the supplier for the beginning A/P, 500,000,000 VND 5. On May 18, the owner invested in the business 900,000,000 VND cash. 6. On May 20, paid cash for utility expenses (electronic, water, telephone) at the administration division of 100,000,000 VND. 7. On May 28, the company was considering signing a sale contract to sell merchandise to client C according to the delivery method to FOB destination: 500 units x 40,000,000 VND per unit. 8. On May 30, paid salaries for all departments of 110,000,000 VND. 9. On May 30, accrued depreciation expense of 65,000,000 VND. 10. On May 30, paid 10,000,000 VND cash for loan interest. The loan interest paid monthly. 11. On May 31, paid in purchasing equipment: invoice price, 200,000,000VND; shipping, 30,000,000 VND; installation and testing, 50,000,000VND; one-year insurance policy, vnd 12,000,000VND. 12. On May 31, Determine the profit after tax. Assume that a corporate income tax rate is 20%. Yêu cầu: 13. Prepare a tabular analysis of the effects of the above transactions from 1st to May 30 on the accounting equation 14. Record the above transactions to the General Journal.
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