JJPM, SA Financial Overview 2X20
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ScribdTranslationsJJPM, SA Financial Overview 2X20
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ScribdTranslationsThe company JJPM, SA presents the following accounts as of January 1, 2X20:
– Constructions: €150,000, of which €50,000 corresponds to the value of the land.
–Machinery: €20,000.
-Furniture: €8000.
-Information processing equipment: 2000€.
Advances to suppliers: €3000.
Advance payments of salaries: 1000€.
Merchandise: €10,000.
–Bank accounts: €140,000.
–Suppliers: 6000€.
Customer advances: 2000€.
–Share capital: to be determined.
Amortizations:
–Buildings: 2% of their value. Acquired on 01/01/2X06. Zero residual value.
Machinery: 10% of its value. Acquired on 01/01/2X16. Null residual value.
Furniture: acquired on 01/01/2X17. It is amortized using the declining balance method with
constant percentage. An useful life of six years and a zero residual value is estimated. Build the
amortization schedule.
–Equipment for information processing: acquired on 01/01/2X19. They are amortized by the method
of the decreasing digit numbers in four years. A null residual value is estimated. Build the
amortization schedule. During the year 2X20, the following operations are carried out (VAT of 21%):
1. Purchase goods for an amount of €20,000. A trade discount has been included in the invoice.
of 5%. The goods are in containers with a return value estimated at €2000. They
apply the advance. The transportation costs of the purchase amount to 200 €.
2. The payroll includes the following items: gross salaries: €15,000; SS paid by the company:
4200 €
for the bank account.
3. Sells merchandise for an amount of €30,000, with a discount on the invoice for early payment of 5%
%. The advance is applied. €15,000 is charged by bank and the rest is documented in promissory notes.
which are accepted by customers. 4. Negotiates a promissory note at a bank for an amount of €8000.
the bank charges 2% interest and 0.1% commission. The rest of the previous promissory notes are
managed at the same bank.
5. On 01/09/2X20, the furniture is sold for €3000. The payment is made under the following conditions:
500 € by bank check and the rest by promissory notes of 200 € each with
monthly expiration. Prior to accounting for the sale, record the corresponding amortization.
in the year 2X20.
6. Returns packaging worth €1200, gets damaged worth €400, and the rest is purchased.
7. Pay the suppliers from point 1 and the Balance with a check of €40,000. The difference
it corresponds to an advance for future purchases (VAT included).
8. Upon the maturity of the bills in point 4, all the discounted bills are attended to by the
clients, except for one for the amount of 1000 €, which remains unpaid. The bank returns it charging
200 € in commissions. The managed letters are attended to at their maturity and a payment is made.
commission of 0.1%.
9. The unpaid bill is considered doubtful to collect and the company accounts for the correction for
deterioration.
10. The client from point 9 communicates that the debt should be considered definitively lost.
11. Account for the depreciations.
At the end of the year 2X20, the fair value of the machinery is €7000 and the selling costs
(sales taxes and sales commissions) amount to €400. This machinery provides
a constant annual cash flow of 1800 €. The discount rate applied for this type of
operations is 4% per year.
13. Settle the VAT.
14. The final inventory of goods amounts to €13,000.
Make the corresponding annotations in the Diary book and prepare the Balance sheet.
final of JJPM, SA.