Voltaire SA's statement of financial position at December 31, 2019, is presented as follows. Voltaire SA...

  

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Voltaire SA's statement of financial position at December 31, 2019, is presented as follows. Voltaire SA Statement of Financlal Posltlon December 31, 2019 € 40,000 Share capital ordinary (€1 par) (20,000) Retained earnings Accounts payable Land € 50,000 Buildings Accumulated depreciation-buildings Supplies 130,000 4,400 45,500 147,400 25,600 €223,000 Accounts receivable Allowance for doubtful accounts (1,500) Cash 24,600 €223,000 During 2020, the following transactions occurred. 1. On January 1, 2020, Voltaire issued 1,500 €20 par, 6% preference shares for €33,000. 2. On January 1, 2020, Voltaire also issued 900 €1 par value ordinary shares for €6,300. 3. Voltaire performed services for €276,000 on account. 4. On April 1, 2020, Voltaire collected fees of €36,000 in advance for services to be performed from April 1, 2020, to March 31, 2021. 5. Voltaire collected €267,000 from customers on account. 6. Voltaire bought €26,100 of supplies on account. 7. Voltaire paid €32,200 on accounts payable. 8. Voltaire reacquired 400 ordinary shares on June 1, 2020, for €8 per share. 9. Paid other operating expenses of €188,200. 10. On December 31, 2020, Voltaire declared the annual preference share dividend and a €0.50 per share dividend on the outstanding ordinary shares, all payable on January 15, 2021. 11. An account receivable of €1,300 which originated in 2019 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that €5,900 of supplies remain unused at year-end. 2. Recorded revenue recognized from item 4 above. 3. The allowance for doubtful accounts should have a balance of €3,500 at year-end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a resid- ual value of €10,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Instructions (You may want to set up T-accounts to determine ending balances.) a. Prepare journal entries for the transactions listed above and adjusting entries. b. Prepare an adjusted trial balance at December 31, 2020. c. Prepare an income statement and a retained earnings statement for the year ending December 31, 2020, and a classified statement of financial position as of December 31, 2020. b. Totals €647,620 C. Net income €58,030 Tot. assets €344,900 Voltaire SA's statement of financial position at December 31, 2019, is presented as follows. Voltaire SA Statement of Financlal Posltlon December 31, 2019 € 40,000 Share capital ordinary (€1 par) (20,000) Retained earnings Accounts payable Land € 50,000 Buildings Accumulated depreciation-buildings Supplies 130,000 4,400 45,500 147,400 25,600 €223,000 Accounts receivable Allowance for doubtful accounts (1,500) Cash 24,600 €223,000 During 2020, the following transactions occurred. 1. On January 1, 2020, Voltaire issued 1,500 €20 par, 6% preference shares for €33,000. 2. On January 1, 2020, Voltaire also issued 900 €1 par value ordinary shares for €6,300. 3. Voltaire performed services for €276,000 on account. 4. On April 1, 2020, Voltaire collected fees of €36,000 in advance for services to be performed from April 1, 2020, to March 31, 2021. 5. Voltaire collected €267,000 from customers on account. 6. Voltaire bought €26,100 of supplies on account. 7. Voltaire paid €32,200 on accounts payable. 8. Voltaire reacquired 400 ordinary shares on June 1, 2020, for €8 per share. 9. Paid other operating expenses of €188,200. 10. On December 31, 2020, Voltaire declared the annual preference share dividend and a €0.50 per share dividend on the outstanding ordinary shares, all payable on January 15, 2021. 11. An account receivable of €1,300 which originated in 2019 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that €5,900 of supplies remain unused at year-end. 2. Recorded revenue recognized from item 4 above. 3. The allowance for doubtful accounts should have a balance of €3,500 at year-end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a resid- ual value of €10,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Instructions (You may want to set up T-accounts to determine ending balances.) a. Prepare journal entries for the transactions listed above and adjusting entries. b. Prepare an adjusted trial balance at December 31, 2020. c. Prepare an income statement and a retained earnings statement for the year ending December 31, 2020, and a classified statement of financial position as of December 31, 2020. b. Totals €647,620 C. Net income €58,030 Tot. assets €344,900

Answer rating: 100% (QA)

74 Date Account Titles Explanation Debit Credit 75 2020 76 01Jan Cash 33000 77 Share ca... View the full answer