Fancy Co. manufactures bakery, applies perpetual inventory system and deductible VAT method. The following information is available in the year N:

BALANCE SHEET

At 31/12/N-1

(CU: 1.000 VND)

ARTICLE	CLOSING BALANCE	ENDING BALANCE
A. ASSETS		50.570.000
I. SHORT TERM ASSETS		30.320.000
Cash		13.000.000
Short term receivables		14.500.000
Prepayment to supplier		2.000.000
Inventory		820.000
II. LONG TERM ASSETS		20.250.000
Tangible fixed assets		20.250.000
+ Historical cost		X1
+ Accumulated depreciation		(?)
B. LIABILITIES AND OWNERS EQUITY		50.570.000
I. LIABILITIES		7.570.000
Current liabilities		7.570.000
+ Payable to suppliers		7.000.000
+ Advances from customers		570.000
II. OWNER'S EQUITY		43.000.000
Capital		40.000.000
Retained earnings		3.000.000

1. 2^nd January, Liquidated an equipment used in the Administrative department. Historical cost: X2, accumulated depreciation: X3. Revenue from liquidation was not paid : 200.000

2. 3^rd January, purchased on credit material A at total price X4 (excluded 10% VAT) transportation expense was paid in cash on hand: 30.000. The amount of material A purchased: 1.100 kg.

3. 10^th January, issued 3000 kg material A for manufacturing cloth

4. 28^th Februay, purchased on credit a manufacturing equipment at total price X5 (excluded 10% VAT), transportation expense and related testing expense was paid in cash: 100.000. The equipment was used on 1st March. Estimated useful life: 5 years. The payment of the equipment must be made after 1 year

5. Total salary payables paid by cash: 2.000.000, in which: payables to direct labor: 500,000, to factory management personnel: 100,000, sales staff: 600,000, general administrative staffs: 800,000

6. Total depreciation cost incurred in the year: 720.000 (excluded the depreciation cost of the fixed asset purchased in January). In which: Depreciation cost for production department: 480,000, for sale department: 140,000, for administration department: 100,000

7. Cash paid for outside service expenses: 750,000. In which, the expenses incurred in production department: 150,000, in sale department: 350,000, in administrative department: 250,000

8. In this year, 1.000 finished goods were sent to warehouse. There is no work-in-progress at the beginning and end of the year

9. On the 20th December, sold on credit 900 finished goods to Star Co. Price before VAT: X6/unit

10. On the 25th December, received 10 returned products.

Required:

1. Complete missing information and make any necessary assumption (beginning account balance, ending account balance, accounting policies) to make journal entries for the above transactions (including depreciation entries, clossing entries, if any). Calculate profit after CIT and make double entries for this process. Knowing that CIT rate: 20%

2. Prepare Balance Sheet and Income Statement for the year N+1.. Make comment on Victorys financial position

3. In case the transaction 25th December on was omitted, identify the impact of omitted entries on Balance Sheet and Income Statement.