EXERCISE 3 (LESSON 3)
The following list of accounts for Company Y Ltd. is available at the end of 200X.
ACCOUNT
Accounts payable for goods
Accounts payable for services
Accounts receivable
Accumulated depreciation of intangible assets
Accumulated depreciation of tangible fixed assets and investment
property (1)
Additional paid in capital
Advances to suppliers
Capital grants
Capital stock
Cash
Computer hardware
Computer software
Containers and packaging returnable by customers
Dividend receivable
Doubtful accounts receivable
Furniture
Goodwill
Impairment of accounts receivables
Impairment of inventories of goods for sale
Impairment of investment property (land)
Income for the year (profits)
Interest payable
Inventory of goods for sale
Investments in constructions
Investments in land
Long term credits to employees
Long term debt with credit institutions
Long term deposits in financial institutions
Long term deposits and guarantees received
Long term holdings in equity (initial balance) (2)
Payable to public authorities (Income tax)
Payable to public authorities (social security)
Payable to public authorities (VAT)
Provision for other responsibilities
Revenues received in advance
Short term credits
Short term debt with credit institutions
Short term debt with suppliers of fixed assets
Short term holdings in equity
Sundry accounts receivables
Uncalled subscribed capital receivable
Vehicles
Voluntary reserve
•
AMOUNT
170,000
80,000
95,000
40,000
80,000
30,000
5,000
45,000
300,000
2,000
130,000
90,000
20,000
18,000
12,000
25,000
200,000
12,000
3,000
15,000
45,000
1,000
38,000
100,000
60,000
40,000
120,000
70,000
75,000
215,000
10,000
18,000
29,000
120,000
35,000
6,000
36,000
12,000
150,000
55,000
75,000
180,000
270,000
The breakdown of the accumulated depreciation is the following:
(1) Furniture:
5,000
(2) Computer hardware:
25,000
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(3) Vehicles:
(4) Investments in constructions:
•
•
•
30,000
20,000
These are shares that have been classified by the company as “available for sale”. There are two groups
of shares:
Holdings in company A:
¾ Book value (1/1/2007):
42,000
¾ Market value (31/12/200X):
50,000
Holdings in company B:
¾ Book value (1/1/2007):
173,000
¾ Market value (31/12/200X):
150,000
These holdings have not yet been valued at fair value.
REQUIRED:
1) Register the valuation at fair value of the long term holdings in equity.
2) Prepare the Balance Sheet according to the normal model of the new PGC.
EXERCISE 4 (LESSON 3)
The following list of accounts for Company Y Ltd. is available at the end of 2008.
Advances from customers 3.150
Accounts receivable, bill of exchange 118.600
Short term debt with credit institutions from the
discounting of bills of exchange 46.400
Salary payable 800
Adjustments for changes in value of financial
instruments available for sale 2.550
Salary paid in advance 2.100
Capital stock 370.000
Uncalled subscribed capital receivable 20.000
Legal reserve 50.000
Accumulated depreciation of intangible assets 2.400
Accumulated depreciation of tangible fixed assets (1)
80.000
Impairment of plant and equipment 8.590
Called subscribed capital receivable 1.260
Cash 146.060
Machinery classified as held for sale 30.000
Debt with suppliers of fixed assets (of the machinery
held for sale) 10.000
Accounts payable 7.800
Long term holdings in equity 7.000
Impairment of inventory of finished goods 600
Short term debt with credit institutions 29.890
Interest payable to credit institutions 600
Long-term debt payable to suppliers of fixed assets
48.920
Voluntary reserve 103.881
Short-term debt payable to suppliers of fixed assets
11.420
Computer software10.000
Constructions 460.000
Machinery 200.000
Plant and equipment 100.000
Inventory of raw materials 2.100
Inventory of finished goods 8.100
Inventory of work-in process 2.700
Capital grants 5.600
Provision for other responsibilities 95.000
Payable to public authorities (Income Tax) 49.855
Expenses paid in advance 1.800
Payable to public authorities (VAT) 10.400
Income for the year ¿?
(1) The breakdown of the accumulated depreciation is the following:
a. Constructions:
50,000
b. Machinery:
20,000
c. Plant and equipment:
10,000
REQUIRED: Prepare the Balance Sheet according to the normal model of the new PGC.
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