Report the final term group discussion

Page ivPLEDGE STATEMENT We declare that the entire content presented in this essay on Accounting Principles is presented by our group, not copied from any documents.. THANK YOU MESSAGES

TERM 22.1A - SCHOOL YEAR 2022 - 2023 SUBJECT: ACCOUNTING PRINCIPLES

COURSE CODE: KT204DV02 (2021_2233)

CLASS ID: 3300

REPORT

THE FINAL TERM GROUP DISCUSSION

Instructor: Ms Đỗ Thị Lệ Thu Group: 8

Students: Hoàng Minh Anh Bùi Thanh Huyền Nguyễn Lê Hoàng Khang Phan Thu Ngân Phạm Bảo Nhi

Nguyễn Vũ Như Quỳnh

Ho Chi Minh City, July 2023

Page ii

TERM 22.1A - SCHOOL YEAR 2022 - 2023

SUBJECT: ACCOUNTING PRINCIPLES

COURSE CODE: KT204DV02 (2021_2233)

CLASS ID: 3300

REPORT THE FINAL TERM GROUP DISCUSSION

Instructor: Ms Đỗ Thị Lệ Thu

Students:

List Of Students Who Made The Report Student

ID

First & Last name Work division % of

Contribution

22205946 Hoàng Minh Anh Part I - Case 2

Support Part III

100%

22202725 Bùi Thanh Huyền Part II

Support Part III

100%

22205338 Nguyễn Lê Hoàng Khang Part IV

Word Report

100%

22116980 Phan Thu Ngân Part - Case 1 I

Word Report

100%

22203130 Phạm Bảo Nhi Part III c,d 100%

22202478 Nguyễn Vũ Như Quỳnh Part III a,b 100%

Semester 2233, 15 July 2023 th

Report submission date: 16/7/2023

Report recipient (signature & full name):

_

TABLE OF CONTENTS

TABLE OF CONTENTS iii

PLEDGE STATEMENT iv

THANK YOU MESSAGES v

OVERVIEW vi

PART I CASES 1

I.1 Case 1 1

I.2 Case 2 1

PART II COSTING AND DEPRECIATION 3

PART III ACCOUNTING CYCLES 4

PART IV LEARNING OUTCOME 11

CONCLUSION 12

Page iv

PLEDGE STATEMENT

We declare that the entire content presented in this essay on Accounting Principles is presented by our group, not copied from any documents If it is not true,

we would like to take all responsibility before the teachers and the school

THANK YOU MESSAGES

First of all, we would like to express our sincere thanks to Hoa Sen University for introducing Accounting Principles subject into the curriculum, especially we would like to express our deep gratitude to the lecturer of Accounting Principles subject –

Ms Đỗ Thị ệ L Thu has taught and imparted valuable knowledge to us during the past study period We have received your care, help, and guidance very passionately From the knowledge you conveyed, we have been practicing, as well as gradually applying skills in study and work That is not only useful in university student life but also helps

a lot in our future

Perhaps knowledge is limitless, but each person s knowledge acquisition always ’ has certain limitations Therefore, in the process of completing the project, it is inevitable that there will be shortcomings We look forward to receiving your comments to improve our report

Wishing you health, happiness, and success in your teaching career path!

July 15, 2023

Group 8

Page vi

OVERVIEW Accounting principles are fundamental guidelines and concepts that govern the practice of accounting They provide a framework for recording, summarizing, and reporting financial transactions and events So this report allows our group to share our research findings and perspectives on accounting principles It helps create a comprehensive understanding of the subject matter by combining various viewpoints and knowledge

In addition, this group discussion fosters collaboration and teamwork among us

It provides an opportunity to exchange ideas, brainstorm, and work together to develop

a well-rounded report on accounting principles

In brief, the final term group discussion on the Accounting Principle report plays an important role in many aspects and skills, it also contributes to the production

of a well-informed and comprehensive report on accounting principles

PART I CASES

I.1 Case 1

In 2022, Apache transfers the land to the buyer and revenue is recognized at this point Gross profit is calculated as the difference between the selling price and the book value of the land The selling price agreed upon between Apache (the seller) and the construction company (the buyer) is $3,000,000 The book value of the land on Apache's books is $1,200,000

The gross profit recognized in 2022 is calculated as the selling price minus the book value:

Gross Profit 2022 = Selling Price – Book Value

Gross Profit 2022 = $3,000,000 $1,200,000 –

Gross Profit 2022 = $1,800,000

→Apache will recognize a gross profit of $1,800,000 in 2022

In 2023, the terms of the sale require a down payment of $150,000 and 19 annual payments of $150,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2023

Since Apache recognizes revenue at the point of delivery, no additional gross profit will be recognized in 2023 The gross profit of $1,800,000 was recognized in

2022

→Apache will not recognize any additional gross profit in 2023

I.2 Case 2

1 If AuctionCo.com purchases the used bicycle for $20 from a supplier and takes control before the sale, the company would recognize revenue of $30

In this case, AuctionCo is a principal because it takes control of this used bicycle → before sale Therefore, AuctionCo would recognize revenue of $30

2 The customer pays $30 to AuctionCo.com, and AuctionCo.com pays $20 to the supplier for the bicycle AuctionCo.com's revenue would be the difference between the amount received from the customer and the amount paid to the supplier So, the revenue recognized by AuctionCo.com would be $10 ($30 -

$20)

Page 2

→ In this case, AuctionCo is an agent because it does not take control of this used bicycle before sale Therefore, AuctionCo would recognize revenue of $10 (commission fees)

PART II COSTING AND DEPRECIATION

Determine the cost of equipment and complete the table of depreciation from

2019 to 2024 using the straight-line method:

Year Depreciable amount DepreciationRate DepreciationExpenses Accumulated Depreciation Book value

Page 4

PART III ACCOUNTING CYCLES

• Require a:

We have:

Total Assets = Cash + Supplies + Equipment + Merchandise inventories – Accumulated Depreciation + Accounts receivable

→ Total Assets = 5.693.363.362 + 345.723.100 + 4.894.263.600 + 791.530.000 – 843.959.400 + X

Total assets = 10.880.920.662 + X

We have:

Total Capital = Salary Payable + s Notes Payable + Account Payable + Owner's

Capital + Retained Earnings

→ Total Capital = 312.417.546 + 2.200.000.000 + 675.300.000 + 8.000.000.000 + 252.160.116

Total Capital = 11.439.877.662

So we have: Total Assets = Total Capital

 10.880.920.662 + X = 11.439.877.662

X = 558.957.000

• Require b:

Record the transactions to the General Journal

Date Account Title REF NO

Debit

Credit

1/1/2023 Cash 111/112 1.201.000.000

5/1/2023 Merchandise

Inventories

(=5.000*80.000)

Account

Receivable

7/1/2023 Rent Expense 641 20.000.000

10/1/2023 Cash 111/112 1.680.000.000

(=12.000*140.000)

Service

Revenue

(=10,000*79,153) Merchandise

Inventories

12/1/2023 Accounts

Payable

15/1/2023 Merchandise

Inventories

(=9.000*80.500) Accounts

Payable

18/1/2023 Cash 111/112 300.000.000

Owner's

Investment

Capital

20/1/2023 Utility

Expense

25/1/2023 Cash 111/112 450.000.000

Accounts

Receivable

Service

Revenue

(=5.000*150.000)

(=3.000*80.000+2.000*

80.500) Merchandise

Inventories

31/1/2023 Employees

Salary

Expense

Administration

Salary

Expense

Salary

Expense

31/1/2023 Accrued

Depreciation

Expense At

The Selling

Page 6

Division

Accrued

Depreciation

Expense At

The

Administration

Division

Depreciation

Of Fixed

Assets

31/1/2023 Interest

Expenses

31/1/2023 Selling

Expenses

31/1/2023 Service

Revenue

511 2.430.000.000

Determine

Business

Performance

Determine

Business

Results

911 1.903.375.000

Financial

Expenses

Selling

Expenses

Enterprise

Cost

Management

Cost Of

Corporate

Income Tax

(526.625.000*20%)

Compulsory

Tax

Determining

Business

Performance

Cost Of

Corporate

Income Tax

Determining

Business

Performance

Retained

Earnings

Transfer the data to the T accounts

558.957.000

1.201.000.000

400.000.000

300.000.000

245.200.000

245.200.000

1.680.000.000

300.000.000

450.000.000

300.000.000

245.200.000

613.757.000

3.876.200.000 1.004.252.000

345.723.100

400.000.000

724.500.000

- -

345.723.100

1.124.500.000 1.352.530.000

Page 8

563.500.000

- - 452.430.000724.500.000

Dr Accumulated Depreciation Cr Dr Salary Expense Cr

843.959.400 312.417.546

- 195.000.000 - 204.023.000

1.038.959.400 516.440.546

Dr Notes Payable Cr Dr Retained Earnings Cr

- 421.300.000

Dr Owner’s Capital Cr Dr Income Tax Cr

300.000.000

-105.325.000

- 105.325.000

• Require c:

Prepare Income Statement for the month ended January 31, 2023

HOANG PHAT TRADING & SERVICE CO LTD

Income Statement For the month ended January 31, 2023

Depreciation expense General and Administration– 140.000.000

Page 10

• Require d:

Prepare the Balance Sheet (Statement of Financial Position)

as of January 31, 2023 HOANG PHAT TRADING & SERVICE CO LTD

Balance Sheet

As of January 31, 2023

BEGINNING BALANCE

ENDING BALANCE

Accumulated Depreciation -843.959.400 -1.038.959.400

Merchandise Inventories 791.530.000 563.500.000

LIABILITIES AND OWNER

EQUITY

LIABILITIES

OWNER EQUITY

TOTAL LIABILITIES AND

PART IV LEARNING OUTCOME

In the course of Accounting Principles, we - group 8 achieved several outcomes that have contributed significantly to our understanding of the subject Especially, we have gained a solid foundation in the fundamental principles and concepts of accounting This inclu des learning about the double-entry system, accrual and cash basis accounting, and the importance of financial statements

Additionally, we have developed essential skills in recording, analyzing, and interpreting financial transactions Through practical exercises and case studies, we have learned how to prepare journal entries, trial balances, income statements, balance sheets, and cash flow statements These hands-on experiences have provided us with a practical understanding of how accounting information is generated and presented Overall, the course on accounting principles has equipped us with a comprehensive understanding of accounting fundamentals, practical skills in financial reporting, and the ability to analyze and interpret financial data We are grateful for the valuable knowledge gained and the guidance provided by you, by our teacher, which has prepared us to apply these principles in future endeavors

Page 12

CONCLUSION

Through this final essay, we understand more about the importance of Accounting Principles and are grateful for the knowledge and experience she has taught

Once again, we would like to express my appreciation to you - the teacher of this Accounting Principles course Ms Đỗ Thị ệ- L Thu, who guided us throughout the course Your expertise, dedication, and effective teaching methods significantly improved our learning experience Moreover, your ability to simplify complex concepts and provide real-world examples helped us understand Accounting Principles' intricacies more effectively and more enjoyable learning We sincerely , thank you for the past semester!