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Question 1 (20 points): The worksheet for Alibaba Shop at November 30 is given
below.

Additional information for the month of November is as follows:

(a) A physical count of supplies indicates $500 on hand at November 30.

(b) The amount of insurance that expired in the month of November was $400.

(c) Depreciation on equipment for November was $600.

(d) Rent owed on the copy shop for the month of November was $750 but will not be
paid until December.

1.1) (10 points) Using the above information, complete the worksheet for Alibaba Shop
for the month of November.

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1.2) (10 points) Preparing the closing entries for the month November of Alibaba Shop.

Question 2 (30 points):

2.1) (18 points) Journalize the following transactions for MegaDuo Supply during
October a) On October 1, MegaDuo Supply had an inventory of 15 backpacks at a cost
of $25 each.

b) On October 4, it purchased 70 backpacks at $25 each from Alibaba Shop, terms

2/10, n/25.

c) On October 6, it received credit of $150 for the return of 6 backpacks purchased on

October 4 that were defective.

d) On October 9, it sold 40 backpacks for $35 each to Liam Store, terms 2/10, n/25.

e) On October 13, it sold 15 backpacks for $35 each to Amiez Office, terms n/20.

f) On October 14, it paid Alibaba Shop in full.

2.2) (12 points) Amiez Office uses the perpetual inventory system and had the
following purchases and sales during March.

Using the inventory and sales data above, calculate the cost of goods sold in March and
the ending inventory at March 31 using FIFO and LIFO methods

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Question 3 (30 points):

3.1) (15 points) The December 31, 2019 balance sheet of Hamiton Corporation had
Accounts Receivable of $500,000 and a credit balance in Allowance for Doubtful
Accounts of $33,000.

During 2020, the following transactions occurred: sales on account $1,400,000; sales
returns and allowances $50,000; collections from customers $1,150,000; accounts
written off $35,000; previously written off accounts of $5,000 were collected.

a) Journalize the 2020 transactions of Hamiton Corporation (10 points).

b) If the company uses the percentage of sales basis to estimate bad debts expense
and anticipates 2% of net sales to be uncollectible, what is the adjusting entry at
December 31, 2008? (5 points).

3.2) (15 points) Agler Company exchanges equipment with Eaton Company and Peters
Company exchanges equipment with Fiero Company. The following information
pertains to the exchanges:

Prepare the journal entries to record the exchanges on the books of Agler Company
and Peters Company.

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Question 4 (20 points):

Company Vinh Luan, created at the beginning of 2021, published the following financial
statements at the end of 2022:

ASSETS 2022 2021 LIABILITIES AND OWNER’S 2022 2021

EQUIRT

CURRENT ASSETS CURRENT LIABILITIES

Trade accounts 348 0 Short-term debt payable to 30 0

receivables for sale and credit institutions
services

Other receivables from 1,824 0 Salary payable 100 0

Public Authorities

Cash (1,872) 4,000 Liability for current tax 18 0

NON-CURRENT ASSETS NON-CURRENT LIABILITIES

Tangible fixed assets 21,890 10,000 Long-term debt payable to 4,000 0

credit institutions

TOTAL ASSETS 22,190 14,000 Other financial liabilities 4,000 0

OWNER’S EQUITY

Owner’s Capital 14,000 14,000

Retained Earnings 42 0

TOTAL LIABILITIES AND 22,190 14,000

OWNER’S EQUITY

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2022

Net sales (600)

Less: Personnel expenses (400)

Less: Fixed assets depreciation expenses (110)

OPERATING INCOME 90

Less: Financial expenses (30)

INCOME BEFORE TAXES 60

Less: Income Tax (18)

NET INCOME 42

During 2022 the operations of the company have been the following:

(1) The services rendered during the year amount 600 VND (50% of these revenues
have been collected in cash during 2022). Personnel expenses were 400 VND (75% of
these expenses have been paid in cash during 2022).

(2) The fixed assets depreciation expense for the year amounts 110 VND.

(3) The 1st of October the company obtained a long-term loan of 4,000 VND from the
VIETCOMBANK, which will be paid back at the end of 2026. The annual interest rate is
3% on the total amount, payable at the end of each semester.

(4) At the end of the year the company has bought new fixed assets with a cost of
12,000 VND; 8,000 VND and the V.A.T. paid in cash and the other 4.000 VND will be
paid in 24 months.

(5) The tax rate is 30%, payable in June of the next year.

(6) V.A.T. is 16%.

Prepare the Cash Flow Statement for year 2022 using indirect method (20 points).

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Hint:

• You may change the net income from accrual basis accounting into the cash
basic accounting by adding income tax expenses to net income. Thus, starting
the statements of cash flows with Income before Taxes of 60 VND. (If the
question does not mention tax of the company, then you must use Net Income of
42 VND but in this question, it has corporate taxes).
• Ignore VAT if the question asks you to use indirect method, include VAT if the
question asks you to use direct method.