We Provide you with the Balance Sheet of a Spanish Company End of the Year Carried out its Accounting According to the PGC 2007: Accounting Case Study, UoT, Canada.
Background: We are providing you with the balance sheet of a Spanish company at the end of the year. The company carried out its accounting according to the PGC 2007. You have to analyse each of the items and specify which group of the Chart of Accounts they belong to and the specific coding that corresponds to it according to the Chart of Accounts of the General Accounting Plan to each entry.Once all the accounts have been coded, create the closing entry for the company.
Intangible fixed assets: Equity capital:
Industrial Propriety 40.500 € Capital Social 3.000.000 €
Cumulative depreciation II -5.000 € Legal reserve 348.180 €
Tangible fixed assets: Profit and Loss 158.810 €
ICT Equipment. 9.000 € Non-current liability
Furniture 70.000 € Long-term
Transport 35.000 € Long-term debt to institutions. 710.000 €
Non-current assets -122.000 €
Cumulative depreciation IM
Current Asset Short-term
Stock: Short-term debts to institutions. 38.000 €
Goods 62.000 € Suppliers 200.000 €
Impairment loses -1.150 € Creditors 3.560 €
TOTAL ASSETS 4.458.550 € TOTAL LIABILITIES 4.458.550 €
Fixed Assets. We are a graphic arts company, and at the beginning of 2016, we acquired a new printer. The price of this printer was 25,000 euros. The additional expenses of the purchase were as follows:
Installation and assembly: 3.000 euros.
Transportation and delivery: 1.150 euros.
All operations have a 21% VAT (not included), and the payment of the amounts is made by bank check.
During January, the assembly and installation of the new printer take place, which is in perfect working condition from February the 1st.
The useful life expectancy of the printer is estimated at 10 years, and its amortisation will be carried out following the linear method. Additionally, at the end of its useful life, the company will have to face the costs of dismantling and rehabilitation of the place. Estimating said costs in 5,000 euros. Besides, said machinery requires specialised weekly maintenance, amounting to 250 euros per month.
The initial cost of the acquisition.
The amortization fees.
The costs derived from daily maintenance.
IAS 36. Impairment of assets. We are a photo studio, and due to the increase in work and staff, we have had to acquire three new cameras and accessories. The acquisition occurred in January 2018. The prices of the cameras are as follows:
Camera 1: 1.750 euros
Camera 2: 3.500 euros
Camera 3: 1.950 euros
Accessories: 4.550 euros
The impairment loss of the asset at the end of 2020, taking into account that the recoverable amount of the acquisitions is:
Camera 1: 575 euros
Camera 2: 1.500 euros
Camera 3: 750 euros
Accessories: 2.200 euros
IAS 38. Intangible Assets. On March 1, 2016, we obtained a patent for 7,500 euros.
At the close of the fiscal year, on December 31, 2016, the fair value of the patent was 9,000 euros.
As of December 31, 2017, the fair value of the patent stands at 8,000 euros.
The criterion we use for valuation after the initial recognition of the asset is the revaluation model.