principle of accounting group assignment

Description of business transactions for the first year of operation:9-Jan Provided consulting services and received cash payment $8,60010-Jan The company sold 70 products at $150/produc

PRINCIPLE OF ACCOUNTING GROUP ASSIGNMENT INSTRUCTOR: NGUYỄN HOÀNG YẾN NHƯ

Semester: SPRING 2024Class: ACC101_IB1802Group 4Name and ID:

Nguyễn Huỳnh Mai Phương

Table of Contents

A.Business introduction and a summary of the accounting cycle: 3

B.Description of business transactions for the first year of operation: 3

1.Transactions description: 3

2.Transaction analysis: 5

C.General Journal and Ledger: 10

D.Unadjusted trial balance, Adjustments, Adjusted trial balance: 15

1.Adjustments : 16

E.Financial statement: 18

1.Income Statement: 18

2.Statement of owner’s equity: 18

3.Balance Sheet: 19

F.Close accounts: 20

G.Analysis and conclusion: 22

1.Analysis : 22

2.Conclusion : 23

A Business introduction and a summary of the accounting cycle:

- The name: VoyageMaster Agency

- Business line: VoyageMaster Agency is a leading provider of maritime services, offeringtailored solutions to clients in the maritime industry With a team of seasoned professionalsand decades of experience, VoyageMaster specializes in vessel management, crewing,technical support, and regulatory compliance Whether for small coastal operators ormultinational shipping corporations, VoyageMaster is dedicated to delivering personalizedservices that optimize vessel operations and enhance profitability Committed to reliability,integrity, and innovation, VoyageMaster Agency is your trusted partner in navigating thechallenges and opportunities of the maritime industry

B Description of business transactions for the first year of operation:

1 Transactions description:

1-Jan Owner invests own money and assets to get the business started on 2024

in the amount of $100,000

2-Jan Purchased office supplies for cash $500

3-Jan Paid for a business license is $1,500

7-Jan The company pays its employees a salary of $3,000

7-Jan Purchased inventory on credit from a supplier $10,000

8-Jan Paid for advertising services in cash $1,000

9-Jan Provided consulting services and received cash payment $8,600

10-Jan The company sold 70 products at $150/product, cost is $7,000

11-Jan Purchased fixed assets (computer equipment) on credit $9,000

13-Jan Withdrew capital for personal use $2,000

13-Jan Paid for insurance services in cash $750

3-Feb Sold goods to a customer and received cash payment $15,000

3-Feb Paid for repair services with a credit card $1,200

13-Feb Purchased additional inventory for cash $3,000

16-Feb Received payment on an outstanding receivable for consulting services

20-Feb Took out a bank loan to purchase new equipment $8,000

22-Feb Paid for leasing services in cash $1,500

25-Feb The company sold 60 products at $150/product

26-Feb Acquired a building for the business $10,000

28-Feb Paid for legal services with a credit card $2,500

5-Mar Sold goods on credit to a customer $8,000

16-Mar Purchased office supplies on credit $1,000

30-Mar Paid for accounting services in cash $2,000

5-Apr Provided consulting services and received payment on account $3,50021-Apr Purchased inventory for cash from a new supplier $7,000

3-May Sold goods to a customer on credit $4,500

9-May Paid for rent with a check $5,000

28-May Received payment from a customer on an outstanding receivable for

goods sold $3,500

1-Jun Purchased a company vehicle for cash $5,000

27-Jun Paid for website design services with a credit card $2,000

6-Jul Sold goods to a customer and accepted payment via electronic transfer

$15,000

25-Jul Purchased office furniture on credit $3,500

2-Aug Provided training services and received cash payment $2,50016-Aug Paid for marketing services in cash $1,800

5-Sep Received payment from a customer on an outstanding receivable for

services provided $3,200

15-Sep Purchased additional inventory on credit from a different supplier

$12,000

12-Oct Paid for electricity with a check $1,000

29-Oct Sold goods to a customer and accepted payment via PayPal $9,00013-Nov Paid for IT support services with a credit card $1,500

26-Nov Received payment on an outstanding receivable for goods sold to a

customer on credit $2,500

31-Dec The company purchased $3,000 of merchandise inventory for cash at

Office supplies 500

Cash 500Paid for a business license is $1,500

Business license expense 1.500

Cash 1.500The company pays its employees a salary of $3,000

Salary expense 3.000

Cash 3.000Purchased inventory on credit from a supplier $10,000

Inventory 10.000

Account payable 10.000Paid for advertising services in cash $1,000

Advertising expense 1.000

Cash 1.000Provided consulting services and received cash payment $8,600

Consulting services rendered 8.600The company sold 70 products at $150/product; cost is $7,000

Account receivable 10.500

Revenue 10.500

Inventory 7.000Purchased fixed assets (computer equipment) on credit $3,000

Computer equipment 3.000

Account payable 3.000Withdrew capital for personal use $2,000

Owner’s withdraw 2.000

Cash 2.000Paid for insurance services in cash $750

Prepaid insurance 750

Cash 750Sold goods to a customer and received cash payment $15,000

Sales revenue 15.000Paid for repair services with a credit card $1,200

Repairs and Maintenance Expense 1.200

Cash 1.200Purchased additional inventory for cash $3,000

Inventory 3.000

Cash 3.000Received payment on an outstanding receivable for consulting services $4,500

Account receivable 4.500Took out a bank loan to purchase new equipment $8,000

Account receivable 9.000

Revenue 9.000

Inventory 6.000Acquired a building for the business $10,000

Building 10.000

Cash 10.000Paid for legal services with a credit card $2,500

Legal Services Expense 2.500

Cash 2.500Sold goods on credit to a customer $8,000

Account receivable 8.000

Consulting revenue 8.000Purchased office supplies on credit $1,000

Office supplies 1.000

Account payables 1.000Paid for accounting services in cash $2,000

Accounting Services expense 2.000

Cash 2.000Provided consulting services and received payment on account $3,500

Account receivables 3.500

Consulting revenue 3.500Purchased inventory for cash from a new supplier $7,000

Inventory 7.000

Cash 7.000Sold goods to a customer on credit $4,500

Account receivables 4.500

Sales revenue 4.500Paid for rent with a check $5,000

Rent expense 5.000

Cash 5.000Received payment from a customer on an outstanding receivable for goods sold $3,500

Account receivables 3.500Provide services and a 30% discount for customers After recording accounts receivable of

$1,950

Sale discount 585

Account receivable 1.950Purchased a company vehicle for cash $5,000

Vehicle 5.000

Cash 5.000Paid for website design services with a credit card $2,000

Website design expense 2.000

Cash 2.000Sold goods to a customer and accepted payment via electronic transfer $15,000

Sale revenue 15.000Purchased office furniture on credit $3,500

Office Furniture 3.500

Account payable 3.500Provided training services and received cash payment $2,500

$3,200

Account receivables 3.200Purchased additional inventory on credit from a different supplier $12,000Inventory 12.000

Account payables 12.000Provide services and a 15% discount for customers After recording accounts receivable of

$3.600

Sale discount 540

Account receivable 3.600Paid for electricity with a check $1,000

Utilities expense 1.000

Cash 1.000Sold goods to a customer and accepted payment via PayPal $9,000

Sales revenue 9.000Paid for IT support services with a credit card $1,500

IT Support expense 1.500

Cash 1.500Received payment on an outstanding receivable for goods sold to a customer on credit

$2,500

Account receivables 2.500The company purchased $3,000 of merchandise inventory for cash at $150/unit

Inventory 3.000

Cash 3.000Provide services and a 25% discount for customers After recording accounts receivable of

$9.000

Sale discount 2.250

Account receivable 9.000The merchandise was defective but the customer agreed to keep it because company offers

a $800 price reductionSales Returns and Allowances 800

8-Jan Advertising service 1,000 94,0009-Jan Consulting service 8,600 102,60013-Jan Withdrawals 2,000 100,60013-Jan Insurance service 750 99,8503-Feb Sold goods 15,000 114,8503-Feb Repair service 1,200 113,65013-Feb Purchases inventory 3,000 110,65016-Feb Receive payment 4,500 115,15020-Feb Took out pay loan and buy

equipment 8,000 123,15022-Feb Paid rent 1,500 121,65026-Feb Acquired building 10,000 111,65028-Feb Legal service 2,500 109,15030-Mar Paid for accounting service 2,000 107,15021-Apr Purchases inventory 7,000 100,1509-May Paid rent 5,000 95,15028-May Receive payment 3,500 98,6501-Jun Purchases vehicle 5,000 93,65027-Jun Website design 2,000 91,6506-Jul Sold goods 15,000 106,6502-Aug Training service 2,500 109,15016-Aug Marketing service 1,800 107,3505-Sep Receive payment 3,200 110,55012-Oct Paid for electricity 1,000 109,55029-Oct Sold goods 9,000 118,55013-Nov IT support 1,500 117,05026-Nov Receive payment 2,500 119,55031-Dec Purchases inventory 3,000 116,550

ACCOUNT RECEIVABLE

Date Explanation PR Debit Credit Balance10-Jan Sold 70 products 10,500 10,500

16-Feb Receive payment 4,500 6,00025-Feb Sold 60 products 9,000 15,0005-Mar Sold goods on credit 8,000 23,0005-Apr Provided service 3,500 26,5003-May Sold goods 4,500 31,00028-May Receive payment 3,500 27,5005-Sep Receive payment 3,200 24,30026-Oct Receive payment 2,500 21,800

COGS

Date Explanation PR Debit Credit Balance10-Jan Sold 70 products 7,000 7,00025-Feb Sold 60 products 6,000 13,000

MERCHANDISE INVENTORY

Date Explanation PR Debit Credit Balance7-Jan Purchases 100 products 10,000 10,00010-Jan Sold 70 products 7,000 3,00013-Feb Purchases inventory 3,000 6,00025-Feb Sold 60 products 6,000 -21-Apr Purchases inventory 7,000 7,00015-Sep Purchases inventory 12,000 19,00031-Dec Purchases inventory 3,000 22,000

Office Furniture

Date Explanation PR Debit Credit Balance25-Jul Purchases office furniture 3,500 3,500

EQUIPMENTDate Explanation PR Debit Credit Balance11-Jan Computer equipment 9,000 9,000

BUILIDINGDate Explanation PR Debit Credit Balance26-Feb Acquired building 10,000 10,000

VEHICLEDate Explanation PR Debit Credit Balance1-Jun Purchases vehicle 5,000 5,000

ACCOUNT PAYABLEDate Explanation PR Debit Credit Balance7-Jan Purchases 100 product 10,000 10,00011-Jan Computer equipment 9,000 19,00016-Mar Purchases office supplies 1,000 20,00025-Jul Purchases office furniture 3,500 23,50015-Sep purchases inventory 12,000 35,500

BANK LOAN PAYABLEDate Explanation PR Debit Credit Balance20-Feb Took out pay loan and buy

equipment 8,000 8,000

ACCOUNT CAPITALDate Explanation PR Debit Credit Balance

1-Jan Investment 100,000 100,000

ONWER'S WITHDRAWLDate Explanation PR Debit Credit Balance13-Jan Withdrawals 2,000 2,000

REVENUEDate Explanation PR Debit Credit Balance9-Jan Consulting service 8,600 8,60010-Jan Sold 70 products 10,500 19,1003-Feb Sold goods 15,000 34,10025-Feb Sold 60 products 9,000 43,1005-Mar Sold goods on credit 8,000 51,1005-Apr Provided service 3,500 54,6003-May Sold goods 4,500 59,1006-Jul Sold goods 15,000 74,1002-Aug Training service 2,500 76,60029-Oct Sold goods 9,000 85,600

EXPENSEDate Explanation PR Debit Credit Balance3-Jan Paid for business license 1,500 1,5008-Jan Advertising service 1,000 2,5003-Feb Repair service 1,200 3,70022-Feb Paid rent 5,000 8,70028-Feb Legal service 2,500 11,20030-Mar Paid for accounting service 2,000 13,20027-Jun Website design 2,000 15,20016-Aug Marketing service 1,800 17,00012-Oct Paid for electricity 1,000 18,00013-Oct Paid rent 1,500 19,50013-Nov IT support 1,500 21,000

31-Dec Purchases inventory 3,000 24,000

D Unadjusted trial balance, Adjustments, Adjusted trial balance:

Unadjusted Trial BalanceFor the year ended 2023

Unadjusted Adjustment Adjusted

Account title Dr Cr Dr Cr Dr CrCash

10,0005,000

2,0001,0001,200

35,5008,000100,00085,600

4,0001,00018,0001,000

4,000

116.55021.80022,00013,0007501,5003,5009,0004,0001,00010,0005,000

2,0001,0001,200

18,0001,000

35,5008,000100,00089,600

229,100 229,100

18,000

23,000 23,000

24,5002,5002,0002,0001,8001,0001,5003,0001,500

252,100 252,100

1 Adjustments :

No Account Debit Credit

1 The company received $4,000 in revenue but has not yet provided services tocustomers

($5,000/5 years)

Depreciation expense 1,000

Accumulated depreciation 1,000

E Financial statement:

1 Income Statement:

VoyageMaster Agency Income statement For the year end 2023

$2,500

$2,000

$2,000 $1,800

VoyageMaster Agency’s capital

Add: Net income $46,600

$10,000

$5,000-$1,000Total Assets $171,100

Liabilities and Owner's Equity

Owner's EquityOwner's investment $144,600

Total owner's equity $131,600Total Liabilities and Owner's Equity $171,100

Accumulated depreciation 1,000Building 10,000

Account Payable 35,500Bank Loan Payable 8,000Owner capital 100,000Owner withdrawal 2,000

Sales revenue 89,600Advertising expense 1,000

Repairs and Maintenance Expense 1,200

Salary expense 3,000

IT support expense 1,500

Total 252,100 252,100

VoyageMaster Agency Posting - Trial Balance For the End Year 2023

194.100

18.00035.5008.0001.000131.600

194.100

CLOSE REVENUE ACCOUNTS TO INCOME SUMMARY

Date Accounts Titles Debit CreditDec 31 Revenue 89.600

Income Summary 89.600

CLOSE EXPENSE ACCOUNTS TO INCOME SUMMARY

Dec 31 Income summary 56,000

Expense 56,000

CLOSE INCOME SUMMARY TO OWNER’S CAPITAL

Dec 31 Income summary 33,600

Net income 33,600

CLOSE WITHDRAWALS TO OWNER’S CAPITAL

Dec 31 Owner, capital 2,000

Owner, Withdrawals 2,000

G Analysis and conclusion:

1 Analysis :

Total debt = Total liabilities / Total asset = 39,500 / 171,100 = 0,23

Debt to equity ratio = Total liabilities / Total equity = 39,500 / 144,600 = 0,27

Account receivable turnover = Net Sales / Account receivable = 89,600 / 21,800 = 4,11Total asset turnover = Net Sales / Total asset = 89,600 / 171,100 = 0,52

Net profit margin = ( Net income / Net Sales ) *100% = ( 46,600 / 89,600) * 100% = 52,01%ROA = ( Net income / Total asset ) * 100% = ( 46,600 / 171,100 ) * 100% = 27,24%ROE = ( Net income / Total equity ) * 100% = ( 46,600 / 144,600 ) * 100% = 32,23%

2 Conclusion :

Through the above indicators, it can be seen that the company is having a fairly stable andeffective business operation in the first year When the company's total debt and debt to equityare quite low, both are less than 1 The Net Profit Margin index is also quite high at 52,01%

Furthermore, the performance indicators ROA and ROE are also relatively stable, reaching27,24% and 32,23%, respectively.