Principle of Accounting 101 Your first investment on capital at Jan 1, 2024 is: 175,000 (included by 150,000 cash and by land valued 25,000) Period: From Jan 01, 2024 to Jan 31, 2024 (one month) Following the ongoing activites, your company has at least 3

Principle of Accounting 101 Your first investment on capital at Jan 1, 2024 is: 175,000 (included by 150,000 cash and by land valued 25,000) Period: From Jan 01, 2024 to Jan 31, 2024 (one month) Following the ongoing activites, your company has at least 3545 transactions for a month, including: 1. Purchasing supplies: By cash and by credit. 2. Purchasing inventories: By cash and by credit. 3. Purchasing service (ex: Repair, insurance, advertising, …): By cash and by credit. 4. Transactions of revenues : (ex: Consulting, rental, service, selling merchandises …): By cash and by receivable accounts. 5. Acquisition of non currentassets and depreciation. 6. Withdrawal capital 7. Payment of salary, bank loan or suppliers.

Individual Assignment

Subject: Principle of Accounting (ACC101)

Class:

Lecturer:

Table Of Content

I INTRODUCTION 3

1 General NDA Store information 3

2 NDA Store items, import prices and selling prices 3

II CONTENTS 4

2.1 Transaction Description 4

2.2 Accoungting Equation 5

2.3 Worksheet 6

2.4 General Ledger 10

2.4.1 Trial balance 11

2.4.2 Closing entries 12

2.5 Income Statement 13

2.6 Owner's Equity 13

2.7 Balace Sheet 14

2.8 Cash Flow Statement 15

III CONCLUSION 17

1 General NDA Store information

Realizing the increasing demand for fashion in the late 2023 and early 2024 period with fashion items in general and footwear in particular In the current Vietnamese market, choosing and buying genuine shoe models is very difficult because counterfeit goods are rampant in the market With the motto "GENUINE - PRESTIGE - QUALITY", NDA store was born to bring customers quality products at the best prices Coming to NDA Store, customers can choose new, hot trending, easy-to-wear shoe colors that bring customers not only beauty but also the feeling when wearing those shoes

NDA Store opens on January 10, 2024 and begins business transactions on January 1, 2024

2 NDA Store items, import prices and selling prices

2.1 Transaction Description

After several months of planning, NDA Store opened for business The following events occurred during the first month of business (January 2024)

Date Short transaction description

1 Company decided to Invest $150.000 in cash and land value $25.000

2 NDA Store paid $4000 for equipment (by credit card)

3 Purchased $800 worth of furniture and decorations

4 Buy 30 models of SAMBA OG SHOES for $90/product and pay $2700 cash

5 Buy 30 more models of SUPERSTAR XLG SHOES for $100/productand pay $3000

6 Sell the first 5 orders of SAMBA OG shoes, total revenue is $500(payable in installments)

7 Get $500 on deals that took place on January 6

8

Buy 30 more ADIDAS FORUM SHOES models for $85/product

with $2550 credit, credit limit 10/2, n/30

8

Pay $1000 in cash to advertise products on websites, store information

on e-commerce products such as: Shopee, Lazada,

10 Sell 5 SUPERSTAR XLG models to customers at the door andreceive $550 cash

11 The owner withdrew $800 in cash for personal expenses

13 Pay for all shoe models due and receive 2% discount

14 Semi-monthly salary of $600 for 2 sales staff ($300/employee)

16 Selling 8 SAMBA OG SHOES for $95/product and 4 SUPERSTAR XLG SHOES for $105/product for customers who buy in bulk

Total $1180 (installment payment)

18 Customer return 4 SAMBA OG SHOES with price of $95/productsold on January 16

19 Get $1180 off product sold on January 16

(installment payment)

21 Pay $1800 for 12 months of store insurance

22

Hiring fast delivery staff with credit $ 200 and salary will be paid

on the 29th

23 Paying $2000 cash for January 21 Transaction

24

Salary payment starts from salary recognition from January 24th and paying

salary on January 30th

25 Get $950 cash on January 24 trading

25 Sell 10 SAMBA OG SHOES to retail customer and get $1000

26 Bought 5 SAMBA OG SHOES at $90/piece and 5 SUPERSTAR XLG SHOESat $100/piece, totaling $950 and prepaid $500, remaining $450 due on January 28

26 Returned 2 pairs of SAMBA OG SHOES (due to sole glue error) to supplier,total value $180

28 Make a payment of $450 for the sale that took place on January 26

29 Paid $200 in wages to express delivery workers on January 21

30 Electricity and water bill paid $50

2.2 Accoungting Equation

The basic accounting equation represents the relationship between the assets, liabilities, and equity of an individual or business It is the foundation for the double-entry bookkeeping system For each transaction, the total debit amount equals the total credit amount In the NDA Accounting Equation table above, there are 36 transactions in January that are fully balanced through each specific transaction On the board, everyone can see details of NDA Store transactions, the increase or decrease for each transaction Thanks to that, viewers can easily track the company's transaction amount that month

2.3 Worksheet

NDA STORE WORKSHEET

Period: From Jan 01, 2024 to Jan 31, 2024 (one month)

NDA Store invests money and assets to start business on January 1, 2024 with $175,000

1

Company decided to Invest $150.000 in cash and land value $25.000

01/01/2024

2

NDA Store paid $4000 for equipment (by credit card)

3

Purchased $800 worth of furniture and decorations

4

Buy 30 models of SAMBA OG SHOES for $90/product and pay $2700 cash

04/01/2024 Merchandise Inventory 2700

5

Buy 30 more models of SUPERSTAR XLG SHOES for $100/product and pay $3000

05/01/2024 Merchandise Inventory 3000

6

Sell the first 5 orders of SAMBA OG shoes, total revenue is $500 (payable in installments)

06/01/2024

7

Get $500 on deals that took place on January 6

8

Payment ($4000) for equipment purchased on January 2

07/01/2024 Account payable 4000

9

Buy 30 more ADIDAS FORUM SHOES models for $85/product with $2550 credit, credit limit 10/2, n/30

08/01/2024 Merchandise Inventory 2550

10

Pay $1000 in cash to advertise products on websites, store information on e-commerce products such as: Shopee,

Lazada,

11

Pay $1000/month rent

12

Sell 5 SUPERSTAR XLG models to customers at the door and receive $550 cash

COGS 500

13

The owner withdrew $800 in cash for personal expenses

14

Pay for all shoe models due and receive 2% discount

13/01/2024

15

Semi-monthly salary of $600 for 2 sales staff ($300/employee)

16

Selling 8 SAMBA OG SHOES for $95/product and 4 SUPERSTAR XLG SHOES for $105/product for customers

who buy in bulk.

Total $1180 (installment payment)

16/01/2024

17

Estimated depreciation for equipment $300

17/01/2024 Depreciation expense 300

Accumulated depreciation 300

18

Customer return 4 SAMBA OG SHOES with price of $95/product sold on January 16

18/01/2024

19

Get $1180 off product sold on January 16

20

Sold 5 SUPERSTAR XLG SHOES total value 550$ (installment payment)

20/01/2024

21

Pay $1800 for 12 months of store insurance

21/01/2024 Prepaid Insurance 1800

22

Buy 20 SUPERSTAR XLG SHOES at $100/product, $2000 total (credit)

21/01/2024 Merchandise Inventory 2000

23

Get $550 on January 20 sale

24 Hiring fast delivery staff with credit $ 200 and salary will be paid on the 29th

22/01/2023 Expense 200

25

Paying $2000 cash for January 21 Transaction

23/01/2024 Account payable 2000

26

Sold 15 ADIDAS FORUM SHOES to retail customer and get $1425 cash

23/01/2024

27

Sold 10 ADIDAS FORUM SHOES total value of $950 (installment payment)

24/01/2024

28

Salary payment starts from salary recognition from January 24th and paying salary on January 30th

29

Get $950 cash on January 24 trading

30

Sell 10 SAMBA OG SHOES to retail customer and get $1000

25/01/2024

31

Bought 5 SAMBA OG SHOES at $90/piece and 5 SUPERSTAR XLG SHOES at $100/piece, totaling $950 and

prepaid $500, remaining $450 due on January 28

26/01/2024

32

Returned 2 pairs of SAMBA OG SHOES (due to sole glue error) to supplier, total value $180

26/01/2024

33

Make a payment of $450 for the sale that took place on January 26

28/01/2024 Account payable 450

34

Paid $200 in wages to express delivery workers on January 21

29/01/2024 Account payable 200

35 Electricity and water bill paid $50

30/01/2024 Expense 50

36

Make payment of $600 semi-monthly salary to 2 employees

Accounting spreadsheets help simplify the process of preparing financial reports for each accounting period Additionally, for financial statements that have already been prepared, accounting spreadsheets can be used to investigate why they may not be in balance It serves

as an analytical and summarizing tool to reflect how accounts are initially posted, adjusting entries are made, and final presentation as financial statements Using accounting spreadsheets is a reliable process to determine the financial position of NDA Store even before preparing financial statements

2.4 General Ledger

The general ledger is an accounting record of all the financial transactions of the NDA This includes debits (money leaving your business) and credits (money entering your business) These transactions can occur across areas such as revenue, expenses, assets, and liabilities Common general ledger types include accounts receivable, accounts payable, and equity The general ledger is used to prepare important financial reports, such as the income statement and balance sheet, which detail the financial position of NDA Store

2.4.1 Trial balance

Account title

Unadjusted Trial Balance Adjustments Trial Balance Adjusted

Furniture Expense

181655 181655 353 353 181955 181955

Note:

Insurance Expense: 1800/12 month= $150 so 150/31 days = 4.8

Conclusion: 4.8 x 11 months= $53

A trial balance is an accounting spreadsheet in which the balances of all ledgers are aggregated into an equal total of debit and credit account columns The general purpose of creating a trial balance is to ensure that the entries in NDA Store's accounting system are

mathematically correct A trial balance is a spreadsheet with two columns, a debit column and a credit column, to ensure a company's accounting records are mathematically accurate Debit and credit accounts include all of a company's business transactions during a given period, including total accounts such as assets, expenses, liabilities, and revenue The Debits and Credits of the trial balance must be counted to ensure there are no mathematical errors, but errors can still occur in the accounting system

2.4.2 Closing entries

A closing entry is a journal entry made at the end of an accounting period that involves transferring data from a temporary account on the income statement to a permanent account

on the balance sheet Temporary accounts include revenue, expenses and dividends and these accounts must be closed at the end of the accounting year A period-end entry is a journal entry made at the end of an accounting period It involves transferring data from temporary accounts on the income statement to permanent accounts on the balance sheet All balances in the final income statement will be transferred to retained earnings

2.5 Income Statement

Revenues

Total Revenues 6155

Expenses

Net Income

The income statement is one of three key financial statements used to report the financial performance of NDA Store during a specific accounting period The income statement focuses on the revenue, expenses, profits, and losses reported by a company during a specific period of time Also known as the profit and loss statement (P&L) or revenue and expense statement, the income statement provides valuable insights into a company's operations, management effectiveness, and areas of underperformance The company's efficiency and performance compared to other companies in the same industry The income statement reports a company's financial performance during a specific accounting period The income statement focuses on a company's revenue, expenses, profits, and losses over a specific period of time The earnings report provides valuable insights into NDA Store's operations, management effectiveness, underperforming areas, and how the company is performing compared to its peers

2.6 Owner's Equity

NDA Store, Capital January 01, 2024

NDA Store, Capital Jan 31, 2024 175752

Equity is the portion of a company's assets that can be claimed by the owners; it is what is left after subtracting a company's liabilities from its assets Equity is listed on a company's balance sheet Equity increases when owners increase investments or the company increases profits Negative equity often indicates a company has more liabilities than assets and can

spell trouble for the business However, a positive NDA Store shows that the company's operations during the month were somewhat effective

2.7 Balace Sheet

Assets

Current Assets

………

Total current assets 141810

Fixed (Long-Term) Assets

Total fixed assets 3700

Other Assets

Total Other Assets 25000

Liabilities and Owner's Equity

Current Liabilities

Short-term loans Income taxes payable Accrued salaries and wages

Total current liabilities -80

Long-Term Liabilities

Long-term debt Deferred income tax Other

Total long-term liabilities $0

Owner's Equity

Total owner's equity 170590

Total Liabilities and Owner's Equity 170510

Balance sheet refers to a financial statement reporting the assets, liabilities and shareholders' equity of NDA Store for the month of January 2024 The balance sheet provides the basis for calculating profit margins for investors and evaluate the company's capital structure It provides an overview of the company's financial position (what it owns and owes) as of its inception date The balance sheet follows an equation that equates assets with total liabilities and equity

2.8 Cash Flow Statement

Operations

Cash receipts from

Net Cash Flow from Operations -15844

Investing Activities

Cash receipts from

Sale of property and equipment Collection of principal on loans Sale of investment securities Cash paid for

Purchase of property and equipment Making loans to other entities Purchase of investment securities

Financing Activities

Cash receipts from

Issuance of stock Borrowing Cash paid for

Repurchase of stock (treasury stock) Repayment of loans

Dividends

A cash flow statement is a financial statement that provides aggregate data on all the cash inflows a company receives from ongoing operations and external investment sources It also includes all cash flows for business and investment activities over a given period of time The cash flow statement includes cash generated by NDA Store through operations, investments and financing - this total is called net cash flow The first part of the cash flow statement is cash flow from operations, which includes transactions from all operating businesses Cash flow from investing is the second part of the cash flow statement and is the result of investment gains and losses Cash flow from financing activities is the final section, providing an overview of cash used from debt and equity Cash inflow - cash outflow < 0, this shows that NDA is in a difficult situation However, this is still a good index because NDA Store's business is in the early stages and aims to grow in the following months

III CONCLUSION

Conclusion After three analysis tables namely trial balance, income statement and balance sheet analyzed the transactions that took place from January 1 to end of January 2024 of NDA From the Income Statement, the company has a Net Income of $1552, which shows that the company has been profitable since its first month of operations This is what kicks off the success of any startup After one month of operation of NDA Store, the company's total assets are $170,510 The company's operations in the first month went quite smoothly with stable revenue to maintain the next round of funding for the next month