Hi,

Would the dismantling and rehab costs at the end of the printer life be included in the initial cost of acquisition? This is in question 1.

Thank you Deanna

FINAL PROJECT Training program: (To be fulfilled by the student) Subject: (To be fulfilled by the student) Send to: accounting@eneb.com Last Name/Surname: Name: ID/Passport: Address: Region: Country: Telephone: E-mail: Date: ENEB Business School Page 6 Final Project Guidelines Please use this format to submit your final work. The paper must follow all the guidelines as instructed in order to obtain full credit. Remember that our team of tutors is available for any questions regarding your final work. You must present the final version of your work as no previous corrections will be carried out. To submit the final project, students must use the template below, with their answers written after each statement. Please present your final paper according to these requirements: Arial 12 Font. Margin: 2,5. Line spacing: 1,5. All fields on the cover page must be completed. The document needs to be properly paged. Your final project must be authentic and individual. 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This consist of: bibliography, visual graphics, charts, independent studies carried out by the student, external academic sources, articles of opinion, etc. All Page 6 sources, both printed and online, must be referenced according to the APA regulations. 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. ASSETS Non-current assets Intangible fixed assets: Industrial Propriety Cumulative depreciation II Tangible fixed assets: Constructions ICT Equipment. Furniture Transport Cumulative depreciation IM Current Asset Stock: Goods Impairment loses Debtors: Clients Short-Term investments Short-term investments (shares) Liquidity: Banks TOTAL ASSETS LIABILITIES 40.500 -5.000 3.900.000 9.000 70.000 35.000 -122.000 62.000 -1.150 Net equity Equity capital: Capital Social Legal reserve Profit and Loss 3.000.000 348.180 158.810 Non-current liability Long-term debts Long-term debt to institutions. 710.000 Current liability Short-term debts Short-term debts to institutions. Suppliers Creditors 38.000 200.000 3.560 236.200 9.000 225.000 4.458.55 0 TOTAL LIABILITIES 4.458.550 Page 6 1) Based on the International Accounting Standards, solve the following exercises: IAS 16. 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 takes 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. Calculate: - 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: Page 6 - Camera 1: 1.750 euros - Camera 2: 3.500 euros - Camera 3: 1.950 euros - Accessories: 4.550 euros Calculate: - The impairment loss of the asset at the end of 2020, taking into account that the recoverable amount of the acquisitions is: o Camera 1: 575 euros o Camera 2: 1.500 euros o Camera 3: 750 euros o 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. Formulate: Make the accounting entries corresponding to the acquisition of the asset and at each accounting close. Page 6