1) Jan. 1x: Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business. 2) Jan. 2md: Taesan buys fire insurance and makes an advance payment of 6,000,000 won for the coming 6 years (use prepaid insurance account). 3) Mar. 1t. Taesan gets a bank loan of 10,000,000won. 4) Apr. 1µ: Taesan purchases equipment worth 5,000,000 won and pays 2,000,000wonin cash and the rest on credit. 5) Apr. 2nd: Taesan purchases supplies worth 5,000,000wonon credit. 6) May. 9a: Taesan writes a contract with Dong-gun Construction Co. to provide non-audit service over the coming 2 years for 20,000,000 won. 7) Jun. 9t. Non-audit service is not provided yet but Taesan receives service fee worth 10,000,000 won for 2012. 8) Aug. 16th: Taesan provides tax advisory service to Yunkyoung Co. and makes a payment request of 2,000,000 won as service fee. 9) Oct. 20%. YunkvQung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still not collected. 10) Nov. 20th: Taesan pays electricity bill of 200,000 won in cash. 11) Nov. 25h: Interest for loan worth 400,000 won is due but it is not yet paid. 12) Dec. Sm: 5,000,000 won of loan is paid back to the creditor in cash. 13) Dec. 28h: 500,000 won is paid to the landlord for rent. 14) Dec. 31«(Present) Insurance premium to be paid for the year has accrued 15) Dec. U(Present) 1/5 of the service that has been paid for in advance on Jun. 9ahas been completed. (In other words, 1/5 of the service fee is to be recognized) 16) Dec. 31«(Present) The ending balance of supplies on hand totals up to 4,000,000 won 17) Dec. 31«(Present) Depreciation expense for the equipment in use is 200,000 won 1. What is the net income of 2012? 2. If there is no dividend pay-out, what is the retain earning for 2012?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
1) Jan. 1st. Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business.
2) Jan. 2ad: Taesan buys fire insurance and makes an advance payment of 6,000,000 won for the coming 6 years (use
prepaid insurance account).
3) Mar. 1st: Taesan gets a bank loan of 10,000,000won.
4) Apr. 1st: Taesa purchases equipment worth 5,000,000 won and pays 2,000,000wonin cash and the rest on credit.
5) Apr. 2nd: Taesan purchases supplies worth 5,000,000wonon credit.
6) May. 9h: Taesan writes a contract with Dong-gun Construction Co. to provide non-audit service over the coming 2
years for 20,000,000 won.
7) Jun. 9h: Non-audit service is not provided yet but Taesan receives service fee worth 10,000,000 won for 2012.
8) Aug. 16th: Taesan provides tax advisory service to Yunkyoung Co. and makes a payment request of 2,000,000 won
as service fee.
9) Oct. 20a: Yunkvoung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still not
collected.
10) Nov. 20th: Taesan pays electricity bill of 200,000 won in cash.
11) Nov. 25a: Interest for loan worth 400,000 won is due but it is not yet paid.
12) Dec. 5th: 5,000,000 won of loan is paid back to the creditor in cash.
13) Dec. 28h. 500,000 won is paid to the landlord for rent.
14) Dec. 31:(Present) Insurance premium to be paid for the year has accrued
15) Dec. 31(Present) 1/5 of the service that has been paid for in advance on Jun. 9ahas been completed. (In other
words, 1/5 of the service fee is to be recognized)
16) Dec. 31(Present) The ending balance of supplies on hand totals up to 4,000,000 won
17) Dec. 31:(Present) Depreciation expense for the equipment in use is 200,000 won
1. What is the net income of 2012?
2. If there is no dividend pay-out, what is the retain earning for 2012?
Transcribed Image Text:1) Jan. 1st. Taesan issues 2,000 shares with a par value of 5,000 won, and just organized their business. 2) Jan. 2ad: Taesan buys fire insurance and makes an advance payment of 6,000,000 won for the coming 6 years (use prepaid insurance account). 3) Mar. 1st: Taesan gets a bank loan of 10,000,000won. 4) Apr. 1st: Taesa purchases equipment worth 5,000,000 won and pays 2,000,000wonin cash and the rest on credit. 5) Apr. 2nd: Taesan purchases supplies worth 5,000,000wonon credit. 6) May. 9h: Taesan writes a contract with Dong-gun Construction Co. to provide non-audit service over the coming 2 years for 20,000,000 won. 7) Jun. 9h: Non-audit service is not provided yet but Taesan receives service fee worth 10,000,000 won for 2012. 8) Aug. 16th: Taesan provides tax advisory service to Yunkyoung Co. and makes a payment request of 2,000,000 won as service fee. 9) Oct. 20a: Yunkvoung pays Taesan 1,000,000 won for the tax advisory service provided but the rest is still not collected. 10) Nov. 20th: Taesan pays electricity bill of 200,000 won in cash. 11) Nov. 25a: Interest for loan worth 400,000 won is due but it is not yet paid. 12) Dec. 5th: 5,000,000 won of loan is paid back to the creditor in cash. 13) Dec. 28h. 500,000 won is paid to the landlord for rent. 14) Dec. 31:(Present) Insurance premium to be paid for the year has accrued 15) Dec. 31(Present) 1/5 of the service that has been paid for in advance on Jun. 9ahas been completed. (In other words, 1/5 of the service fee is to be recognized) 16) Dec. 31(Present) The ending balance of supplies on hand totals up to 4,000,000 won 17) Dec. 31:(Present) Depreciation expense for the equipment in use is 200,000 won 1. What is the net income of 2012? 2. If there is no dividend pay-out, what is the retain earning for 2012?
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education