Principles Of Accounting Individual Assignment.pdf

- The current state of the beauty industry: The beauty market is rapidly evolving and dynamic, with new products and services appearing on the market every day.. Skincare accounts for 6

Full name : Nguyễn Thị Mỹ Ngân Student ID : CS171405 Class : BA1706

PRINCIPLES OF ACCOUNTING

ACC101

INDIVIDUAL ASSIGNMENT

INSTRUCTOR

Mr Pham Thai Bao

2023

TABLE OF CONTENT

I Introduction : 3

II Accounting report: 3

1 Transactions description: 4

2 Transaction analysis: 4

3 General journal 5

4 General ledger ( Post) 7

5 Unadjusted trial balance & Adjusted entries & Adjusted trial balance 8

6 Adjustments : 9

7 Trial balance : 10

8 Income statement 10

9 Statement of owner’s equity 11

10 Balance sheet 11

11 Close account: 12

III Conclusion : 13

IV Reference: 13

2

- The current state of the beauty industry: The beauty market is

rapidly evolving and dynamic, with new products and services

appearing on the market every day

+ Also according to the growth statistics of the beauty industry, the

number of employees in the service segment is expected to

increase by 10% for barbers and hairdressers, and estheticians and

nearly 22% for the massage therapy sector in 2024

+ The global skincare market was worth nearly $135 billion in 2018,

a growth of nearly 60% over the past ten years Skincare accounts

for 60% of all profits in the beauty industry

+ Due to the increasing awareness of the importance of skincare, not

only the beauty needs of women but also the increasing number of

men buying skin care products, this market segment continues to

grow According to the survey of women's beauty needs, in 2019

skin care sales increased by 5% over the previous year, in which

anti-aging and natural beauty products and services were the

largest contributors

+ According to experts, the current state of the beauty industry, the

beauty industry in general and the cosmetics industry in particular,

is considered to have a strong growth rate The report of the Global

Wellness Institute shows that the period 2015 - 2017 the global

healthcare industry grew 12.8%, from 3.7 trillion USD to 4.2 trillion USD 6.4%/year) Spending is about $4.2 trillion, more than half of

the total health spending of $7.3 trillion

- Business lines: Realizing that people's beauty needs are

increasing day by day, especially hairdressing + beauty salons And

after realizing the great demand from the locals as well as the

people Therefore, I decided to open a Salon specializing in

haircuts + beauty to serve everyone

- The influence of the industry on people in Can Tho:

Recently, when people's living standards change, the awareness of

beauty needs increasing, and along with the development of

technology, the perception of the cosmetic industry is increasingly

changing Spa services such as skin care, body care, and relaxing

massage also become a necessity, often for relaxation and energy

recovery after stressful working hours

1 Transactions description:

Feb 1, I invested $5,000 in cash and $13,000 in equipment in

Expressions

Feb 2, The Expressions Company paid $70 in cash to buy furniture

for the store

Feb 3, The Expressions Company paid $100 in cash to rent space in

the mall for marketing in April

Feb 4, The company purchased $1,100 in store credit equipment

Feb 5, The company received cash from the barber service in the

first week and a half of business (end of February 15) of $2,000

Feb 7, The company pays $1,500 cash for employee salaries

Feb 9, Expressions offers a $1,000 haircut on account

Feb 13, Expressions received a check for $100 for services

previously provided on the account

Feb 15, Expressions paid $125 to an assistant for hours worked

during opening

Feb 17, Expressions company receives cash from services rendered

in the second half of February of $2,500

Feb 20, The company paid a $400 installment of principal on a

promissory note signed on February 4

Feb 22, I withdrew $900 cash for personal use

Feb 25, The company pays the February rent of $800

Feb 27, The company pays a utility bill of $500 in February

Feb 28, The company pays insurance premiums for employees for

March and April of $1,000

2 Transaction analysis:

4

h + Accountreceiva

ble

Equipme

nt + Supplies + PrepaidInsuran

ce

Prepai d rent

Notes payable Owner’s +

capital

Withdraw

al Revenue - Expens

e 5,00

0

2,00

0

2,000

-1,50

0

1,50 0

100 -100

2,50

0

2,500

-1,00

0

1,000

4,20

5 900 14,100 70 1,000 0 700 18,000 900 5,500 3,02 5

3 General journal

Feb.1 Cash $5,000

Owner's Capital $18,000

Feb.3 Marketing Expense $100

Note payable $1,100

Feb.7 Salary Expense $1,500

Feb.9 Account Receivable $1,000

Account Receivable $100 Feb.15 Wages Expense $125

Feb.22 Owner's withdrawl $900

6

Feb.27 Utilities expense 500

Feb.28 Prepaid Insurance 1,000

4 General ledger ( Post)

Withdra

wal

Equipme nt

Note payable

Dat

e

it

t

Feb

22

Dat

e

Debit Cred

it

Owner’s, Capital

Expense

Feb

1

t

Feb

2

Feb

3

Feb

5

Feb

7

1,500 Date Debit Credit Feb 25 800

Feb

13

Feb

15

Feb

17

2,500

Feb

20

Feb

22

receivabl e

t

Feb

25

Feb

27

Feb

28

0

Prepaid Insuranc e

Feb 28 1,000

1,000

5 Unadjusted trial balance & Adjusted entries & Adjusted trial balance

Unadjusted Trial Balance

For the month ended February 28, 2022

Balance

8

Notes payable

Supplies

Equipment

Prepaid insurance

Revenue

Owner capital

Owner withdrawal

Marketing expense

Salaries expense

Wages expense

Rent expense

Utilities expense

Depreciation Expense -

equipment

Accumulated

Depreciation

-equipment

Prepaid rent

Total

70 14,100 1,000

900 100 1,500 125 800 500

24,200

700

5,500 18,000

24,200

400

800 1,200

400

1,200

70 14,100 1,000

900 100 1,500 125 800 500 400

800 24,600

700

5,500 18,000

400

24,600

6 Adjustments :

1 Depreciation of used equipment up to $400

Dr Depreciation Expense - equipment

400

Cr Accumulated Depreciation - equipment

400

2 The company pays the rent for April for $800

Dr Prepaid rent

800

Cr Cash

800 7 Trial balance : Hair Salon Trial Balance February 28 $ Dr

$ Cr Cash 3,405 Equipment 14,100 Supplies 70

Account receivables 900

Notes payable

700

Revenue

5,500 Owner’s Capital

18,000 Owner’s withdrawal 900

Marketing expense 100

Utilities expense 500

Wages expense 125

Rent expense 800

Salaries expense 1,500 Depreciation Expense - equipment 400

Accumulated Depreciation - equipment

400 Prepaid rent 800

Prepaid insurance 1,000

Total $ 24,600

$ 24,600

10

8 Income statement

Hair Salon Income statement For the month end February 28 Revenue:

Revenue for the sale

$5,500

Total revenues

$5,500

Expenses:

Marketing expense

100

Utilities expense 500

Wages expense

125

Rent expense 800

Salaries expense 1,500

Depreciation Expense - equipment 400

Total expenses

$3,425

Net income

$2,075

9 Statement of owner’s equity

Hair Salon Owner’s equity statement

For the month ended February 28

Owner’s capital, Feb 1

Add: Investment $18,000

Net income 2,075

$20,075

Less: Drawings

900

Owner’s capital, Feb 30

$

19,175

Hair Salon Balance Sheet February 28

Assets

Cash

$3,405

Account receivable 900 Supplies 70

Equipment 14,100 Prepaid insurance

1,000

Prepaid rent

800

Less : Accumulated Depreciation - equipment (400)

Total assets

$19,875

Liabilities and owner’s equity Liabilities:

12

Notes payable 700

Owner’s equity

Owner’s capital

19,175 Total liabilities and Owner’s equity:

$19,875

11 Close account:

CLOSE REVENUE ACCOUNTS TO INCOME SUMMARY

28 -

Income Summary 5,500

CLOSE EXPENSE ACCOUNTS TO INCOME SUMMARY

28 -Feb Income summary 3,425

Marketing expense 100

Wages expense 125 Utilities expense 500 Depreciation expense 400

Rent expenses 800 Salaries expense 1,500 CLOSE WITHDRAWALS TO OWNER’S CAPITAL

28 -

Feb

Owner’s Withdrawal 900

CLOSE INCOME SUMMARY TO OWNER’S CAPITAL

28 -

Retained earnings 2,075

Through the statistics of Hair Salon in February, it can be seen that their

business activities went smoothly and efficiently When the indicators

show that the business is effective, Hair Salon net income is quite low at

$ 2,075 but still shows a good signal Then with $18,000 of initial equity,

along with net income The company's equity last month increased to

$20,075 Although the company's debt is quite small, this shows that the

company's business is good and stable The company should continue to

maintain the business strategy to increase business efficiency

https://actgroup.com.vn/nghien-cuu-va-bao-cao-thi-truong-lam-dep-viet-nam-nam-2020/

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Face Massage $60 /45 minute

Swedish Massage $80 /50 minute

Sports Massage $70 /40 minute

Stress relief $80 / 50 minute

Nail services $10 - $100

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