Final report - Tài liệu tham khảo | Đại học Hoa Sen

1 TABLE OF CONTENTS
TABLE OF CONTENTS............................................................................1
PLEDGE.................................................................................................2
ACKNOWLEDGEMENT...........................................................................3
TEAM MEMBER......................................................................................4
TASK ASSIGNMENT...............................................................................5
I. CASES (TÌNH HUỐNG) (20 MARKS)....................................................6
Case 1................................................................................................6
Case 2................................................................................................7
II. ANALYZE THE TRANSACTIONE (20 MARKS)......................................8
III. ACCOUNTING CYCLES (50 MARKS)................................................15 2 PLEDGE
We pledge that the entire content of this essay has been completed
by our group and has not been copied or reproduced from any other
sources. All sources of information, references, and data have been
properly acknowledged and cited. We understand that plagiarism is a
serious academic offense, and we have ensured that this work fully
complies with the ethical guidelines of the institution. 3 ACKNOWLEDGEMENT
First of all, We would like to send to the lectures of Hoa Sen University
our sincerest and deepest thanks.
In particular, We would also like to give our warmest thanks to the
lecture, Mrs. Le Thi Bich Thao. You have wholeheartedly guided us
in the learning process as well as in completing the thesis. We could
not have completed this essay without you.
We have tried to complete this essay, but errors may not be avoided.
We respectfully hope to receive advices from lectures to improve the article. 4 TEAM MEMBER N Student ID Name Note o. number 1. 22206966 Đàng Thục Huệ Team leader 2. 22207436 Nguyễn Thị Hường 3. 22205062 Võ Ngọc Bảo Ngân 4. 22205884 Nguyễn Hoàng Nhật 5. 22201402 Nguyễn Hà An Thuyên 5 TASK ASSIGNMENT N Student Name Assigned Evalua Note o. ID tasks te number 1. 2220696 Đàng Thục Huệ Part III: a, b, 100% Team 6 c, d, e leader Report prepare 2. 2220743 Nguyễn Thị Part I 100% 6 Hường 3. 2220506 Võ Ngọc Bảo Part III: a, b, 100% 2 Ngân c, e 4. 2220588 Nguyễn Hoàng Part II 100% 4 Nhật 5. 2220140 Nguyễn Hà An Part IV, III: c 100% 2 Thuyên Đàng Thục Huệ Nguyễn Thị Hường Nguyễn Hoàng Nhật 6 Nguyễn Hà An Thuyên Võ Ngọc Bảo Ngân 7
I. CASES (TÌNH HUỐNG) (20 MARKS) Case 1 – 10 Marks
ABC Consulting Firm provides specialized consulting services to clients. On
March 1, 2024, ABC Consulting entered into a contract with XYZ Corporation
to provide a comprehensive market analysis report. The terms of the
contract stipulate that ABC Consulting will receive $12,000 upon the
completion of the report, which is due on May 31, 2024.
In addition, the firm received an advance payment of $4,000 from XYZ
Corporation on March 1, 2024, as a deposit against the total contract price.
Question. According to the Revenue Recognition Principle, how should
ABC Consulting record the $4,000 advance payment and the revenue from
the market analysis report in its financial statements?. SOLUTION
On March 1, 2024, ABC Consulting received an advance payment of $4,000
from XYZ Corporation. According to the Revenue Recognition Principle,
revenue should only be recognized when the service has been completed.
Therefore, this advance payment should not be immediately recognized as
revenue. Instead, the amount should be recorded as a liability in the
financial statements, as ABC Consulting has not yet completed the service
and still has the obligation to provide the market analysis report.
On May 31, 2024, ABC Consulting completed the market analysis report. At
this point, the service has been completed, and revenue can be recognized
according to the Revenue Recognition Principle. Therefore, the total revenue
from the contract, amounting to $12,000, should be recognized.
Once the service has been completed, the previously received advance
payment of $4,000 will be transferred from Unearned Revenue to Revenue,
since the service has been performed.
The remaining revenue of $8,000 (total contract revenue of $12,000 minus
the $4,000 advance payment) should be recognized as revenue. If the
$8,000 has not yet been received from XYZ Corporation at this time, it
should be recorded as Accounts Receivable. Date Account Debit Credit March 1, 2024 Cash $4,000 $4,000 May 31, 2024 Unearned Revenue $4,000 8 Accounts Receivable $8,000 Revenue $12,000 Case 2 - 10 Marks
Fresh Produce Inc. is a company that deals in fresh fruits and vegetables. At
the end of the fiscal year on December 31, 2024, Fresh Produce Inc. is
evaluating its inventory of apples to determine the proper valuation for financial reporting. Inventory Details:
Total Quantity of Apples in Inventory: 1,000 units Cost per Unit $3. Total Cost of Inventory: 1,000 units × $3 = $3,000. Market Information:
Option 1. Estimated Selling Price per Unit: $4, Estimated Costs to Sell per Unit: $1.
Option 2. Estimated Selling Price per Unit: $3.5, Estimated Costs to Sell per Unit: $1.
Required. Given the details provided for Fresh Produce Inc., let’s evaluate
the inventory valuation using the Net Realizable Value (NRV) method
and compare it with the cost to determine the proper valuation for financial reporting. SOLUTION
Net Realizable Value (NRV) is the value that a company expects to receive
from the sale of inventory after subtracting the costs required to complete
the sale. NRV is calculated as follows:
NRV = Estimated Selling Price - Estimated Selling Costs Option 1
NRV per unit: NRV = $4 - $1 = $3]
Total NRV for inventory: 1,000 units x $3 = $3,000 Option 2 9
NRV per unit: NRV=$3.5−$1=$2.5
Total NRV for inventory: 1,000 units × $2.5 = $2,500
Comparison with Cost Price to Determine the Fair Value for Financial Reporting: Option 1
NRV ($3,000) = Cost Price ($3,000). Therefore, the inventory value is recorded as $3,000 Option 2
NRV ($2,500) < Cost Price ($3,000). Therefore, the inventory value is recorded as $2,500
II. ANALYZE THE TRANSACTIONE (20 MARKS)
Alpha Manufacturing Inc. is a company that produces electronic
components. During the fiscal year ending December 31, 2024, the
company recorded several significant transactions. You will analyze
these transactions to determine their impact on the financial
statements (Income Statement and Balance Sheet).
March 1, 2024, Sold 500 units of electronic components to Beta
Electronics for $200 per unit. Cost of Goods Sold (COGS): $120 per
unit. Customer paid 30% of cash.
March 10, 2024, Purchase office equipment costing $12,000. The
company paid $2,000 in cash and financed the remaining $10,000.
March 31, 2024, Paid salaries totaling $8,000 for the month of
March. The payment was made in cash.
April 2, 2024, Received $20,000 in cash from customers for sales made in March 1, 2024.
April 30, 2024, Accrued interest expense of $600 on a loan taken out
last year. The interest rate is 6% per annum.
May 10, 2024, Purchased 1,000 units of raw materials at $50 per unit
from Gamma Suppliers. Payment Terms: Net 60 days.
June 1, 2024, Paid monthly rent of $5,000 for the production facility.
October 15, 2024, Took a short-term loan of $50,000 from the bank
at an annual interest rate of 6%. Payment Terms: Due in 6 months. 10
November 20, 2024, Paid $2,000 for utilities for the month of December.
December 31, 2024, recorded depreciation expense for machinery
amounting to $15,000 for the year. SOLUTION TRANSCATIONS ANALYSIS Date Account titile DR CR NOTE March 1 Cash 30.0 ] =500*200*30% 00 Account receivable 70.0 ] =500*200*70% 00 Revenue ] 10.0 =500*200 00 Cost of goods sold 60.0 ] =500*120 00 Inventory ] 60.0 ] 00 March 10 Equipment 12.0 ] ] 00 Cash ] 2.00 ] 0 Long term liabilities ] 10.0 ] 00 11