$1$FU$251$ Case study The company Ski$4$kids produces children's skis. Skis are ordered via e$-$shop and delivered to end customers by courier. The company does not incur any receivables from this business, everyone pays on delivery or even in advance. The company uses a classification of expenses by function and is divided into $3$ divisions within the company structure: Production, Administration and Distribution $($Selling$).$ From $1$ tonne of plastic, $100$ pcs of ski sets are produced using a $3$D printer. Before finishing, each ski set $(1$ pair of skis$)$ is treated with a protective varnish. $0\mathrm{.}1$ Kg of varnish is used for each ski set. The company owns the following types of non$-$current assets as of $1$ January $2020$: AssetBuildingPersonal car$3$D printerDate when the asset was put in use$14.8.201105.05.201908.08.2016$The purchase price $($CZK$)18000000110000012000000$Directly attributable costs $($CZK$)--3000000$The residual value $($CZK$)-200000-$Useful life $/$ capacity$30$ years$120000$ km$15000$ ski setsAsset utilisation by division:Production$70\%0\%100\%$Administration$20\%0\%0\%$Distribution$10\%100\%0\%$ Internal regulations on non$-$current assets:Non$-$current assets are depreciated from the month following the month when they were put in use.The building is depreciated over its estimated useful life using straight$-$line depreciation method. The $3$D printer and the personal car are depreciated using units$-$of$-$activity method. The estimated total capacity of the $3$D printer is $15000$ ski sets $($as of $31$ December $2019,$ the $3$D printer has produced $5000$ ski sets$).$ The personal car has driven $14000$ kilometres in $2019.$ The estimated total capacity of car is $120000$ km$.$ Other internal regulations:The company's accounting period is the calendar year.The company uses a classification of expenses by function.The FIFO method is used for the valuation of finished goods and inventory of materials for production. As of $1$ January $2020,$ the company reports the following account balances $($in CZK$)$ in addition to the information provided above: Share capital: CZK $23000000$Retained earnings: CZK $4515000$Material: CZK $500000(21$ t of plastic$)$Advance provided to the supplier of varnish: CZK $600000$Current account: CZK $4000000$Payables to suppliers: CZK $900000$Payables to employees: CZK $800000$Tax payable: CZK $420000$Finished products: CZK $540000(300$ pcs$)$ All payments in the company are made from$/$to the bank account unless specifically stated otherwise. During the financial year $($calendar year $2020),$ the Company has made the following transactions: $1.$ All outstanding wages to employees and outstanding taxes were paid from the bank account$\mathrm{.}2.$ Supplier delivered $300$ kg of protective varnish for which the advance was provided by the company in prior year, no further payment was required$\mathrm{.}3.$ Purchased $22$ t of plastic for CZK $450000$ on credit. The invoice for the transport of this material was sent directly from the carrier. The price stated on the invoice for transport is CZK $100000\mathrm{.}4.$ Invoice received for electricity consumption in the amount of CZK $295000$ with a breakdown:a$.$ CZK $205000$ consumed in production,b$.$ CZK $60000$ consumed in the Administration division,c$.$ CZK $30000$ consumed in the Distribution division$\mathrm{.}5.$ Wages and salaries accounted for in the total annual amount of CZK $3000000($used in Production $50\%,$ Administration $30\%$ and Distribution $20\%).$ The final balance of payables to employees as at $31\mathrm{.}12\mathrm{.}2020$ is CZK $700,000\mathrm{.}6.$ Liabilities to suppliers of CZK $1200000$ were paid from the current account$\mathrm{.}7.$ In $2020,$ the personal car has driven $12000$ kilometres$\mathrm{.}8.$ The company paid for a web advertisement offering a vacancy $($sales representative$).$ The advertisement is ordered and paid for the period July $2020$ to June $2021.$ The price of the advertisement is $6000$ CZK$\mathrm{.}9.$ In December $2020,$ the company was awarded a contract for the supply of skis to ski schools and received a deposit of CZK $3000000$ from the ski schools. The skis will be produced and delivered in January$\mathrm{.}10.$ In $2020,2200$ ski sets were produced, no unfinished production is remaining at the year end$\mathrm{.}11.$ All products $($including those produced in previous years$)$ were sold in total for CZK $8157000.$ All paid into the company's current account. Don't forget that even in the introduction there is information that implies some events and activities to account for! Required: $1.$ Prepare the Opening Balance sheet as at $1$ January $2020\mathrm{.}2.$ Record the transactions on T$-$ accounts$\mathrm{.}3.$ Prepare the Income statement for the year $2020\mathrm{.}4.$ Prepare the Closing Balance sheet as at $31$ December $2020.$