You are on page 1of 67

INTRODUCTION

ACCOUNTING ADVISING UNDER IFRS (A.A.U.IFRS) It is an accounting office,


whose members have extensive individual experience as accountants or consultants
nationally recognized companies. We are dedicated to providing personalized audit,
accounting, and consulting services, providing timely work quality and efficiency to meet
the needs of our customers and contribute to the generation of added value that our customers
need.
Our main services include:
Development computerized accounting.
Preparation and submission of monthly reports of sales and purchases.
Preparation and submission of monthly reports on payrolls of their workers.
Preparation and submission of monthly reports of income, deductions and
withdrawals from their purchases and sales.
Preparation and submission of monthly or semi-annual statements.
Preparation of financial statements of your company

Our audit and accounting firm integrates five members and is located in the city of Machala
in Junin and Rocafuerte first east.

NAME OF OUR ACCOUNTING OFFICE:

ACCOUNTING ADVISING
UNDER IFRS (A.A.U.IFRS.)

LIST THE RESPONSIBILITIES:

RAQUEL PREZ VELEZ


Introduction
Source Documents
Vocabulary

ERWIN QUINTERO QUIONEZ

Balance Sheet Initial


Accounting Journal

JULISSA BARROS ELIZALDE


General Ledger
Sales report

MORELIA CAROLINA RAMREZ

Trial balance
Income Statement

JESSICA SANMARTIN CEDILLO

Balance Sheet
Cash Flow
Calculations

We account for the company:

PAPER TRAIL
OFFICE
SUPPLIES S.A
DEDICATED:
BUYING AND SELLING OFFICE SUPPLIES.
TAXPAYER ID:
0796558756001
ADDRESS:
JUNIN AND ROCAFUERTE FIRST EAST
PHONE:
928250

1. The Trading Company PAPER TRAIL OFFICE SUPPLIES S.A with tax payer. N
0796558756001 started operations in October, 1st , 2015 with the next Balance Sheet #1:

PAPER TRAIL OFFICE SUPPLIES S.A


Banlance Sheet Initial
To the 31 of December, 2015
ASSETS
CURRENT ASSETS
Cash-Bank
Accounts receivable
Provision for uncollectible accounts
Merchandise Inventory
NON-CURRENT ASSETS
Lands
Buildings
Computing Equipment
Office Formiture
Vehicle
Accumulated Depreciation
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Accounts Payable (Providers)
Payrolls Payable
IESS Payable
Commissions Payable
Income tax Payable

19.980,00
5.000,00
2.000,00
- 20,00
13.000,00
52.800,00
10.000,00
20.000,00
2.800,00
1.000,00
30.000,00
- 11.000,00
72.780,00

14.100,00
8.500,00
1.000,00
600,00
500,00
3.500,00
10.000,00

NOT CURRENT LIABILITIES


Bank Loan
TOTAL LIABILITIES

10.000,00

OWNERS EQUITY
Capital
Legal Reserve
Retained earnings
TOTAL OWNER EQUITY

38.680,00
2000,00
8000,00

TOTAL LIABILITIES + OWNERS


EQUITY

_______________________
MANAGER

24.100,00

48.680,00

72.780,00

_______________________
ACCOUNTANT

2.

October, 5 Purchased to MEGA OFFICE SUPPLY, S.A wit Tax Payer N


0793245647001 the next merchandise and canceled with check # 001-001-00455:
600 Paper Clips a $0,03 either one.
50 Stapler a $18,00 either one.
6 Desk Lamp $30,00 either one.
75 Note Pad $4,00 either one.
15 Cubicle Divider $ 130,00 either one.
10 File Cabinet $90,00 either one.

3.

October, 18 Selled in cash the 60% and 40% accounts receivable to period of 30 days
to Juan Perez (Natural Person Required to keep accounting) with Tax Payer N
0704142356001, the next:
10 desk lamp a $35,00 either one and
5 Cubicle divider $ 150,00 either one

Note: In this sell we must consider that the Price of product include VAT.

4.

October, 28 realiced to the company Ramirez S.A, with Tax Payer N 0796520310001
the next sell in cash:
8 Dry Eraser a $ 3,00 either one, plus VAT.
12 Binder a $ 1,50 either one, plus VAT.

5.

October, 31 canceled with check # 001-001-00-456 the salary of the month:

N
1
2
3
4
5
6
7

NAMES
Mario Flores Len
Wilson Barzallo Espinoza
Ana Cedeo Ramrez
Alex Andrade Bueno
Diego Aucay Salazar
Javier Len Balcazar
Monica Fajardo Bermeo

CHARTER
0706235689
0102035678
0104765324
0702328326
0104356789
0701349977
0702348976

CHARGE
Accountant
Administrator
Secretary
Head of sales
Selling 1
Selling 2
Assistant service

WORKS
DAYS
30
30
30
30
30
30
30

SALARY
1.300,00
1.500,00
354,00
720,00
354,00
354,00
354,00

Note: We must consider the extraordinary hours, overtime, the advances and fees.

The Accountant: 2 extraordinary hours and 3 overtime.


The Administrator: 3 extraordinary hours.
The Head of sales: 2 Overtime hours.
The Mr Javier Len B. : have a fee of $ 50,00
The Head of sales gain 0,80% of sales of the month and the sellers gain of comisin
1%.

6.

November, 10 Canceled the first share of Bank Loan.

7.

November, 22 Canceled $800,00 of Advertising of the company with cash.

8.

December, 10 Canceled the second share of Bank Loan and the interest.

9.

December 19 Realiced anual Depreciation expense:

DESCRIPTION
Computing Equipment
Land
Office Fornitures
Vehicles

NUMBER
2
1
1
1

PRICE
EITHER
ONE
1.400,00
20.000,00
1.000,00
30.000,00

RESIDUAL
VALUE
200,00
2.400,00
100,00
5.000,00

YEARS
USEFUL
LIFE
4
22
10
5

10.

December, 21 The members agree distributed the 70% of the retained earnings.

11.

December, 27 Canceled in cash the Basic Services for the month of October and
November $ 300,00. ( CASH)

Its asked:
Prepare the accounting proccess and all balances of the company.

TAXPAYER ID #

MEGA OFFICE SUPPLY, S.A

0793245647001
ADDRESS: Bolivar & Julio Betancourt St.

INVOICE NUMBER

Phone: 928266

001-001

000000000-567

MACHALA- EL ORO- ECUADOR

AUTHO RIZATIO N

ORIGINAL: CLIENT / COPY 1: ISSUER / COPY 2: NO TAX VALUE

IRS
116329894

#:
BILL TO:

PAPER TRAIL OFFICE SUPPLIES S.A

ADDRESS:

ST. JUNIN AND ROCAFUERTE FIRST EAST

Taxpayer ID #

QUANTITY
600
50
6
75
15
10

0 796558756001

DESCRIPTION
Paper Clips
Stapler
Desk Lamp
Note Pad
Cubicle Divider
File Cabinet

Observations: provides superior products and customer


service.

INVOICE DATE
Month

Day

Year

October

2015

UNIT PRICE
$
0,03
$
18,00
$
30,00
$
4,00
$
130,00
$
90,00

TOTAL
$
$
$
$
$
$

18,00
900,00
180,00
300,00
1.950,00
900,00

SUBTOTAL

4.248,00

DISCOUNT

TAX 12%

509,76

BALANCE DUE $

4.757,76

TAX 0%

SELLER

CUSTOMER

TRUJILLO GARCA FERNANDA MATILDE, GRAPHICS IMPRENTTRU RUC: 0704567892001- AUT #10620-12BLOCKS
(100*3)- DATE OF APPROVAL: 3-08-2015- EXPIRES AUGUST 3, 2016

PAPER TRAIL OFFICE SUPPLIES S.A

TAXPAYER ID #: 0796558756001

WITHHOLDING

Original: Taxpayer Held , Copy : Agent Retention

NUMBER: 001-003-00567
IRS AUTHORIZATION #: 1109984321

Name or social reason:


Address:

MEGA OFFICE SUPPLY, S.A

Bol i va r & Jul i o Beta ncourt St.

TAXPAYER ID #

Month

Day

Year

October

2015

0 793245647001

Type receipt of purchase:


IRS Authorization #:

Invoi ce

Receipt of purchase #:

001-001-000000000-567

116329894

Date of issue:

October 5, 2015

FISCAL EXERCISE

TAXABLE

TAX

TAX CODE

% RETENTION

TIEBACK

2015

$ 4.248,00

INCOME TAX

312

1%

$ 42,48

TOTAL RETAINED

42,48

Angel Bolivar Carlos Mora / Printing Bolivar RUC . 1709876543001 , Aut 1059 1
100x2 Block No. 400 to 500 , Date of Approval: 01/01/2016 Valid until
01/01/2017 for issue
SIGNATURE RETENTION AGENT

TAXPAYER

Check N: 001-001-00455
Date: October 5, 2015
To: MEGA OFFICE SUPPLY,
S.A
Balance:
Deposit:

$
$

5.000,00
3.000,00

Bank Machala

Current Account: 2205728901


Check N 001-001-00455

4.715,28

Pay to the: MEGA OFFICE SUPPLY, S.A


The sum of: FOUR THOUSAND SEVEN HUNDRED FIFTEEN
DOLLARS WITH TWENTY -EIGHT CENTS

Total

8.000,00

Check

4.715,28

Balance

3.284,72

Machala, October 5,2015


City

Asignature

Not invade the area with calligraphic traits or seals

PAPER TRAIL OFFICE SUPPLIES S.A

TAXPAYER ID #

0796558756001

ORIGINAL: CLIENT / COPY 1: ISSUER / COPY 2: NO TAX VALUE

ADDRESS: JUNIN AND ROCAFUERTE FIRST EAST

INVOICE NUMBER

Phone: 928250

001-001
IRS

000000000-001

MACHALA- EL ORO- ECUADOR

AUTHO RIZATIO N

354675689

#:
BILL TO:

JUAN PREZ

ADDRESS:

Guayas e/ Sucre and 25 de Junio

Taxpayer ID #

QUANTITY
10
5

0 704142356001

DESCRIPTION
Desk Lamp
Cubicle Divider

INVOICE DATE
Month

Day

Year

October

18

2015

UNIT PRICE TOTAL


$
31,21 $
$
133,93 $

SUBTOTAL

Observations: provides superior products and customer


service.

SELLER

DISCOUNT
TAX 12%
$
TAX 0%
BALANCE DUE $

312,50
669,64

982,14
117,86
1.100,00

CUSTOMER

TRUJILLO GARCA FERNANDA MATILDE, GRAPHICS IMPRENTTRU RUC: 0704567892001- AUT #10620-12BLOCKS
(100*3)- DATE OF APPROVAL: 3-11-2015- EXPIRES NOVEMBER 3, 2016

TAXPAYER ID #:0704142356001

Original: Taxpayer Held , Copy : Agent Retention

Sr. JUAN PREZ VLEZ


(NATURAL PERSON WITH ACCOUNTING)

Name or social reason:


Address:

PAPER TRAIL OFFICE SUPPLIES S.A

JUNIN AND ROCAFUERTE FIRST EAST

TAXPAYER ID #

WITHHOLDING
NUMBER: 001-003-00867
IRS AUTHORIZATION #: 1109984076

Month

Day

Year

October

18

2015

0 796558756001

Type receipt of purchase:


IRS Authorization #:

FISCAL EXERCISE
2015

TAXABLE
$ 982,14

Invoi ce

Receipt of purchase #:

001-001-000000000-001

354675689

Date of issue:

October 18, 2015

TAX
INCOME TAX

TAX CODE
312

% RETENTION
1%

TIEBACK
$ 9,82

TOTAL RETAINED

9,82

Angel Bolivar Carlos Mora / Printing Bolivar RUC . 1709876543001 , Aut 1059 1
100x2 Block No. 400 to 500 , Date of Approval: 01/01/2016 Valid until
01/01/2017 for issue
SIGNATURE RETENTION AGENT

TAXPAYER

N: 54698
FOR US: $ 436,07

CITY: Machala
DATE: October 18,2015

BILL OF EXCHANGE
CITY:

Machala

N
DATE:

54698

FOR US:

436,07

October 18,2015 EXPIRES: November 18,2015

It must pay unconditionally in this place to thirty days of acceptance for this BILL OF EXCHANGE
, to order PAPER TRAIL OFFICE SUPPLIES S.A . The amount of four hundred thirty-six
dollars and seven cents, plus interest of 1.5% annually, and arrears 0,5 % annum swithout
protest.

TO: Juan Prez Vlez


ORDER OF: Paper trail
office supplies S.A "

Avoid filing for acceptance and payment, as well as notices for lack of these facts

ADDRESS:Junin and
Rocafuerte First East
EXPIRES: Novembre 18,
2015

TO: JUAN PREZ VLEZ


ADDRESS: Guayas e/ Sucre and 25 de Junio

PHONE: 942556
CITY: Machala
ATTENTIVELY

PAPER TRAIL OFFICE SUPPLIES S.A

TAXPAYER ID #

0796558756001

ORIGINAL: CLIENT / COPY 1: ISSUER / COPY 2: NO TAX VALUE

ADDRESS: JUNIN AND ROCAFUERTE FIRST EAST

INVOICE NUMBER

Phone: 928250

001-001
IRS

000000000-002

MACHALA- EL ORO- ECUADOR

AUTHO RIZATIO N

354674323

#:
BILL TO:

COMPANY RAMREZ S.A.

ADDRESS:

Bolivar e/ Junin and 25 de Junio

Taxpayer ID #

QUANTITY
8
12

0 796520310001

DESCRIPTION
Dry Eraser
Binder

INVOICE DATE
Month

Day

Year

October

28

2015

UNIT PRICE TOTAL


$
3,00 $
$
1,50 $

SUBTOTAL

Observations: provides superior products and customer


service.

SELLER

DISCOUNT
TAX 12%
$
TAX 0%
BALANCE DUE $

24,00
18,00

42,00
5,04
47,04

CUSTOMER

TRUJILLO GARCA FERNANDA MATILDE, GRAPHICS IMPRENTTRU RUC: 0704567892001- AUT #10620-12BLOCKS
(100*3)- DATE OF APPROVAL: 3-11-2015- EXPIRES NOVEMBER 3, 2016

TAXPAYER ID #:0796520310001

Original: Taxpayer Held , Copy : Agent Retention

COMPANY RAMREZ S.A.

Name or social reason:


Address:

PAPER TRAIL OFFICE SUPPLIES S.A

JUNIN AND ROCAFUERTE FIRST EAST

TAXPAYER ID #

WITHHOLDING
NUMBER: 001-002-00867
IRS AUTHORIZATION #: 1109765321

Month

Day

Year

October

28

2015

0 796558756001

Type receipt of purchase:


IRS Authorization #:

FISCAL EXERCISE
2015

TAXABLE
$ 42,00

Invoi ce

Receipt of purchase #:

001-001-000000000-002

354674323

Date of issue:

October 28, 2015

TAX
INCOME TAX

TAX CODE
312

% RETENTION
1%

TIEBACK
$ 0,42

TOTAL RETAINED

0,42

Angel Bolivar Carlos Mora / Printing Bolivar RUC . 1709876543001 , Aut 1059 1
100x2 Block No. 400 to 500 , Date of Approval: 01/01/2016 Valid until
01/01/2017 for issue
SIGNATURE RETENTION AGENT

TAXPAYER

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001

PAYROLL

Names and Surnames

1 Mario Flores Len

CHARTER

CHARGE

W\D

SALARY

EXTRA
HOURS

Accountant

30

$ 1.300,00 $

21,67

102035678
2 Wilson Barzallo E.
3 Ana Cedeo Ramrez 104765324

Administor
Secretary

30
30

$ 1.500,00 $
$ 354,00

37,50

4 Alex Andrade Bueno

0702328326

Head of sales

30

720,00

5 Diego Aucay Salazar 104356789


6 Javier Len Balcazar 0701349977
0702348976
7 Monica Fajardo B.

Selling 1
Selling 2
Assist. service

30
30
30

$
$
$

354,00
354,00
354,00

0706235689

TOTAL

OVERTIME

24,39

9,00

$ 4.936,00 $ 59,17 $ 33,39

MANAGER

COM.

TOTAL INCOME

CONTRIB.
TOL IESS

ADVANCE

INCOME
TAX

TOTAL
REVENUES

NET TO PAY

1.346,06 $ 127,20

$ 32,27 $

159,47 $

1.186,59

$
$

1.537,50 $ 145,29
354,00 $ 33,45

$ 53,48 $
$

198,77 $
33,45 $

1.338,73
320,55

69,66 $

667,53

$
$
$

34,42 $
84,42 $
34,42 $

329,82
279,82
329,82

$ 8,19

737,19 $

69,66

$ 10,24
$ 10,24
$ 10,24

$
$
$

364,24 $
364,24 $
364,24 $

34,42
34,42 $
34,42

50,00

$ 38,91 $ 5.067,47 $ 478,88 $ 50,00 $ 85,75 $ 614,63

ACCOUNTANT

$ 4.452,84

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001

TABLE OF PROVISIONS
TO DECEMBER 31

Names and Surnames

CHARGE

W/ DAYS

Mario Flores Len

Accountant

2
3
4
5
6
7

Wilson Barzallo E.
Ana Cedeo Ramrez
Alex Andrade Bueno
Diego Aucay Salazar
Javier Len Balcazar
Monica Fajardo B.

Administor
Secretary
Head of sales
Selling 1
Selling 2
Assist,service

TOTAL INCOME

XIII SALARY

121
83
45

$
$
$

6.500,00 $
4.500,00 $
1.880,00 $

67
48
41
53

$
$
$
$

940,00
620,00
1.750,00
366,00

TOTAL

MANAGER

$
$
$
$

16.556,00 $

XIV SALARY

2.184,72 $
1.037,50 $
235,00 $
174,94
82,67
199,31
53,88

$
$
$
$

3.968,02 $

HOLIDAYS

123,02 $
84,38 $
45,75 $
68,12
48,80
41,68
53,88

$
$
$
$

465,63 $

270,83 $
187,50 $
78,33 $
39,17
25,83
72,92
15,25

EMPLOYER
CONTRIB.

RESERVE FUND

$
$
$
$

TOTAL

541,45 $
374,85 $
156,60 $

789,75 $
546,75 $
228,42 $

78,30
51,65
145,78
30,49

114,21
75,33
212,63
44,47

$
$
$
$

689,83 $ 1.379,11 $

ACCOUNTANT

3.909,77
2.230,98
744,11

$
$
$
$

474,74
284,28
672,31
197,97

2.011,55 $

8.514,16

Check N: 001-001-00456
Date: October 31 , 2015
To: EMPLOYERS

Balance:
Deposit:

$
$

3.284,72
6.436,85

Bank Machala

Current Account: 2205728901


Check N 001-001-0046

12.967,00

Pay to the: workers


The sum of: TWELVE THOUSAND NINE HUNDRED SIXTYSEVEN DOLLARS WITH ZERO CENTS

Total

8.000,00

Check

6.436,85

Balance

1.563,15

Machala, October 31,2015


City

Asignature

Not invade the area with calligraphic traits or seals

PAPER TRAIL OFFICE SUPPLIES S.A


Balance Sheet Initial
To the 31 of December, 2015
ASSETS
CURRENT ASSETS

23.980,00

Bank
Cash
Accounts receivable
Provision for uncollectible accounts
Merchandise Inventory

12.000,00
8.000,00
2.000,00
- 20,00
2.000,00

NON-CURRENT ASSETS
Lands
Buildings
Computing Equipment
Office Formiture
Vehicle
Accumulated Depreciation
TOTAL ASSETS

10.000,00
20.000,00
2.800,00
1.000,00
22.000,00
- 7.000,00

LIABILITIES
CURRENT LIABILITIES
Accounts Payable (Providers)
Payrolls Payable
IESS Payable
Commissions Payable
Income tax Payable

48.800,00

______72.780,00____

14.100,00
8.500,00
1.000,00
600,00
500,00
3.500,00
10.000,00

NOT CURRENT LIABILITIES


Bank Loan
TOTAL LIABILITIES

10.000,00

OWNERS EQUITY
Capital
Legal Reserve
Retained earnings
TOTAL OWNER EQUITY

38.680,00
2000,00
8000,00

24.100,00

48.680,00

TOTAL LIABILITIES + OWNERS


EQUITY

_______________________
MANAGER

72.780,00

____________________
ACCOUNTANT

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001
OCTOBER 01 TO DECEMBER 31, 2015
DATE

DETAIL

October, 1

-1Bank

FOLIO N 1

PARTIAL
5.000,00

Cash

FOLIO N_____01_____
DEBIT
HAVINGS
12.000,00
8.000,00

Accounts receivable

2.000,00

2.000,00

Provision for uncollectible accounts

- 20,00

( 20,00)

Merchandise Inventory

13.000,00

2.000,00

Lands

10.000,00

10.000,00

Buildings

20.000,00

20.000,00

Computing Equipment

2.800,00

2.800,00

Office Formiture

1.000,00

1.000,00

Vehicle

30.000,00

22.000,00

Accumulated Depreciation

11.000,00

( 7.000,00)

Accounts Payable (Providers)

8.500,00
1.000,00

Payrolls Payable
IESS Payable

600,00

Commissions Payable

500,00

Income tax Payable

3.500,00

Bank Loan

10.000,00

Capital

38.680,00

Legal Reserve

2000,00

Retained earnings

8000,00

To register its initial situation


October, 5

-2PURCHASE

4.248,00

Purchase rate 12%

4.248,00

VAT PAID

509,76

OBLIGATIONS WITH THE TAX ADMINISTRATION


Income tax withholding

42,48
42,48

BANK

4.715,28

Bank of Machala

4.715,28

To register Purchased to Mega Office Supply.


October, 18

-3CASH

654,11

BILL OF EXCHANGE

436,07

OBLIGATIONS WITH THE TAX ADMINISTRATION


Income tax withholding

9,82
9,82

SALE
Sale rate 12%

982,14
982,14

VAT PAID
Vat paid rate 12%

117,86
117,86

To register Salled to Juan Prez


PASS

78.637,76

78.637,76

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001
OCTOBER 01 TO DECEMBER 31, 2015

FOLIO N 2
FOLIO N_____01_____

DATE

DETAIL

PARTIAL

COME

DEBIT

HAVINGS

78.637,76

October, 28

78.637,76

-4CASH

46,62

OBLIGATIONS WITH THE TAX ADMINISTRATION


Income tax withholding

0,42
0,42

SALE

42,00

Sale rate 12%

42,00

VAT PAID

5,04

Vat paid rate 12%

5,04

To register selled to Company RAMIREZ S.A


October, 31

-5PRODUCTION PAYROLL

4.452,84

INCOME

5.067,47

Salaries Payable

4936,00

Extra Hours

59,17

Overtimes

33,39

Commissions

38,91

REVENUES

(614,63)

Employees Contribution to IESS 9,45%

478,88

Advance

50,00

Income tax

85,75

SOCIAL BENEFITS PAYABLE

8.514,16

XIII Salary

3.968,02

XIV Salary

465,63

Holidays

689,83

Reserve fund

1.379,13

Employer contribution

2.011,55

BANK

12.967,00

Bank of Machala

12.967,00

To register Payroll and table of provisions.


November, 10

-6BANK LOAN

833,33

INTEREST

116.67

CASH

950,00

To register payment the first share of Bank Loan.


November, 22

-7ADVERTISING

800,00

CASH

800,00

To register payment of Advertising of the company.


PASS

93.401,80

93.401,80

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001
OCTOBER 01 TO DECEMBER 31, 2015
DATE

DETAIL

PARTIAL

COME

FOLIO N 3
FOLIO N_____01_____
HAVINGS

DEBIT

93.401,80

December, 10

93.401,80

-8BANK LOAN

833,33

INTEREST

106,94

CASH

940,27

To register payment the second share of Bank Loan.


December, 19

-9DEPRECIATION OF PPyE

6.200,00

Computing Equipment

300,00

Land

800,00

Oficce fornitures

100,00

Vehicles

5.000,00

ACCUMULATED DEPRECIATION OF PPyE.

6.200,00

To register anual Depreciation of PPy E.


December, 21

-10RETAINED EARNINGS

5.600,00

Shareholders

5.600,00

CASH

5.600,00

To register distributed of the retained earnings.


December, 27

-11BASIC SERVICES

300,00

CASH
To register payment the Basic Services for the month of
October and November

TOTAL

300,00

106.442,07

106.442,07

_______________________
MANAGER

___________________
ACCOUNTANT

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015
ACCOUNT: BANK
DATE
October, 1

DETAIL
REFERENCE
To register its initial situation
1
$
To register Purchased to Mega Office
October, 5
2
Supply.
October, 31 To register Payroll and table of provisions.
5
TOTAL

DEBIT
12.000,00

CREDIT
$

12.000,00

BALANCE
$ 12.000,00

4.715,28

7.284,72

$ 12.967,00

(5.682,28)

(5.682,28)

17.682,28

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Accounts receivable


DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

TOTAL

DEBIT
$

2.000,00

2.000,00

BALANCE

CREDIT
$

2.000,00

2.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Provision for uncollectible accounts


DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

TOTAL

DEBIT
$

BALANCE

CREDIT

20,00

20,00

20,00

20,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Merchandise Inventory


DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

TOTAL

DEBIT
$

2.000,00

2.000,00

BALANCE

CREDIT
$

2.000,00

2.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Lands
DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

TOTAL

DEBIT
$

BALANCE

CREDIT

10.000,00

10.000,00

10.000,00

10.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Buildings
DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

TOTAL

DEBIT
$

BALANCE

CREDIT

20.000,00

20.000,00

20.000,00

20.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Computing Equipment


DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

TOTAL

DEBIT
$

2.800,00

2.800,00

BALANCE

CREDIT
$

2.800,00

2.800,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Office Formiture


DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

TOTAL

DEBIT
$

1.000,00

1.000,00

BALANCE

CREDIT
$

1.000,00

1.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Vehicle
DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

DEBIT
$

TOTAL

BALANCE

CREDIT

22.000,00

22.000,00

22.000,00

22.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Accumulated Depreciation


DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

December, 19

To register anual Depreciation of PPy E.

TOTAL

DEBIT
$

7.000,00

7.000,00

BALANCE

CREDIT
$

7.000,00

6.200,00

800,00

6.200,00

800,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Accounts Payable (Providers)


DATE
October, 1

DETAIL
To register its initial situation

REFERENCE

DEBIT

TOTAL

BALANCE

CREDIT

8.500,00

8.500,00

8.500,00

8.500,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Payrolls Payable


DATE
October, 1

DETAIL
To register its initial situation

TOTAL

REFERENCE

DEBIT

BALANCE

CREDIT

1.000,00

1.000,00

1.000,00

1.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: IESS Payable


DATE
October, 1

DETAIL
To register its initial situation

REFERENCE

DEBIT

TOTAL

BALANCE

CREDIT

600,00

600,00

600,00

600,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Commissions Payable


DATE
October, 1

DETAIL
To register its initial situation

TOTAL

REFERENCE

DEBIT

BALANCE

CREDIT

500,00

500,00

500,00

500,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Income tax Payable


DATE
October, 1

DETAIL

REFERENCE

DEBIT

To register its initial situation

TOTAL

BALANCE

CREDIT
$

3.500,00

3.500,00

3.500,00

3.500,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT:Bank Loan
DATE

DETAIL

REFERENCE

DEBIT

BALANCE

CREDIT

October, 1

To register its initial situation

November, 10

To register payment the first share of Bank Loan.

833,33

9.166,67

December,10

To register payment the second share of Bank Loan.

833,33

8.333,34

8.333,34

TOTAL

1.666,66

10.000,00

10.000,00

10.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Capital
DATE
October, 1

DETAIL
To register its initial situation

REFERENCE

DEBIT

TOTAL

BALANCE

CREDIT

38.680,00

38.680,00

38.680,00

38.680,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Legal Reserve


DATE
October, 1

DETAIL
To register its initial situation

TOTAL

REFERENCE

DEBIT

BALANCE

CREDIT

2.000,00

2.000,00

2.000,00

2.000,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: Retained earnings


DATE

DETAIL

REFERENCE

October, 1

To register its initial situation

December, 21

To register distributed of the retained earnings.

10

DEBIT
$

TOTAL

BALANCE

CREDIT

5.600,00

5.600,00 $

8.000,00

8.000,00

8.000,00

2.400,00

2.400,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: PURCHASE
DATE
October, 5

DETAIL
To register Purchased to Mega Office Supply.

TOTAL

REFERENCE
2

DEBIT
$

BALANCE

CREDIT

4.248,00

4.248,00

4.248,00

4.248,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: VAT CHARGED


DATE

DETAIL

REFERENCE

October, 18

To register Salled to Juan Prez

October, 28

To register selled to Company RAMIREZ S.A

TOTAL

DEBIT
$
$

BALANCE

CREDIT

117,86

117,86

5,04

122,90

122,90

122,90

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: OBLIGATIONS WITH THE TAX ADMINISTRATION


DATE

DETAIL

REFERENCE

DEBIT

BALANCE

CREDIT

October, 5

To register Purchased to Mega Office Supply.

October, 18

To register Salled to Juan Prez

9,82

32,66

October, 28

To register selled to Company RAMIREZ S.A

0,42

32,24

32,24

TOTAL

10,24 $

42,48

42,48

42,48

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: CASH
DATE

DETAIL

REFERENCE

DEBIT

BALANCE

CREDIT

October, 1

To register its initial situation

8.000,00

8.000,00

October, 18

To register Salled to Juan Prez

654,11

8.654,11

October, 28

To register selled to Company RAMIREZ S.A

46,62

8.700,73

November, 10

To register payment the first share of Bank Loan.

950,00

7.750,73

November, 22

To register payment of Advertising of the company.

800,00

6.950,73

December,10

To register payment the second share of Bank Loan.

940,27

6.010,46

December, 21

To register distributed of the retained earnings.

10

5.600,00

410,46

December, 27

To register payment the Basic Services for the month of


October and November

11

300,00

110,46

110,46

TOTAL

8.700,73

8.590,27

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: BILL OF EXCHANGE


DATE
October, 18

DETAIL
To register Salled to Juan Prez

TOTAL

REFERENCE

DEBIT

BALANCE

CREDIT
436,07

436,07

436,07

436,07

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: SALE
DATE

DETAIL

REFERENCE

DEBIT

BALANCE

CREDIT

October, 18

To register Salled to Juan Prez

982,14

October, 28

To register selled to Company RAMIREZ S.A

42,00

TOTAL

- $

1.024,14

982,14

1.024,14

1.024,14

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: PRODUCTION PAYROLL


DATE
October, 31

DETAIL
To register Payroll and table of provisions.

TOTAL

REFERENCE

DEBIT

BALANCE

CREDIT
4.452,84

4.452,84

4.452,84

4.452,84

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: SOCIAL BENEFITS PAYABLE


DATE
October, 31

DETAIL

REFERENCE

To register Payroll and table of provisions.

DEBIT

TOTAL

BALANCE

CREDIT

8.514,16

8.514,16

8.514,16

8.514,16

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: INTEREST
DATE

DETAIL

REFERENCE

DEBIT

November, 10

To register payment the first share of Bank Loan.

116,67

December,10

To register payment the second share of Bank Loan.

106,94

TOTAL

223,61

BALANCE

CREDIT

116,67

223,61

223,61

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: ADVERTISING
DATE
November, 22

DETAIL

REFERENCE

DEBIT

To register payment of Advertising of the company.

TOTAL

BALANCE

CREDIT

800,00

800,00

800,00

800,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: VAT PAID


DATE
October, 5

DETAIL
To register Purchased to Mega Office Supply.

TOTAL

REFERENCE

DEBIT

BALANCE

CREDIT
509,76

509,76

509,76

509,76

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: DEPRECIATION OF PPyE


DATE
December, 19

DETAIL

REFERENCE

To register anual Depreciation of PPy E.

DEBIT

TOTAL

BALANCE

CREDIT

6.200,00

6.200,00

6.200,00

6.200,00

PAPER TRAIL OFFICE SUPPLIES S.A


GENERAL LEDGER
OCTOBER 01 TO DECEMBER 31, 2015

ACCOUNT: BASIC SERVICES


DATE
December, 27

DETAIL
To register payment the Basic Services for the
month of October and November

TOTAL

MANAGER

REFERENCE

DEBIT

11

BALANCE

CREDIT
300,00

300,00

ACCOUNTANT

300,00

300,00

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001
SALES REPORT
FROM JANUARY 01 TO DECEMBER 31, 2015
FOLIO N_____01_____

SALES REPORT
60.000,00
50.000,00
40.000,00
30.000,00
20.000,00
10.000,00
0,00

"OFFICE PAPER TRAIL" S.A made business sales report of 2015, with the following
details
January sales decreased due to previous editions. In February and March in the region
Costa is the beginning of the school year in schools and colleges; Therefore, sales of
school supplies increased.
Classes begin in April, therefore, sales of school supplies continued to increase and
therefore in sales in May and June to find sales stabilized.

In July and August sales, profits fell sharply due to goods detained by customs. In
September and October sales decreased due to the regeneration of the local streets
where they are located.
In November and December sales increased due to the season reasonably start classes
in the Sierra region.

MANAGER

ACCOUNTANT

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001
TRIAL BALANCE
OCTOBER 01 TO DECEMBER 31, 2015
N

BALANCES
FOLIO N_____01_____
DEBIT
CREDIT

SUMS

DETAIL

DEBIT

HAVINGS

Bank

12.000,00 $

17.682,00

5.682,00

Cash

8.700,73 $

8.590,27

110,46

2.000,00 $

2.000,00

(20,00) $

(20,00)

Accounts receivable
$
Provision
for
uncollectible
$
accounts
Merchandise Inventory
$

2.000,00 $

2.000,00

Lands

10.000,00 $

10.000,00

Buildings

18.000,00 $

18.000,00

Computing Equipment

1.800,00 $

1.800,00

Office Formiture

1.000,00 $

1.000,00

10 Vehicle

20.000,00 $

20.000,00

11 Accumulated Depreciation

7.000,00 $

6.200,00

800,00

12 Accounts Payable (Providers)

8.500,00

8.500,00

13 Payrolls Payable

1.000,00

1.000,00

14 IESS Payable

600,00

600,00

15 Commissions Payable

500,00

500,00

16 Income tax Payable

3.500,00

3.500,00

17 Bank Loan

1.666,66 $

10.000,00

8.333,34

18 Capital

38.680,00

38.680,00

19 Legal Reserve

2.000,00

2.000,00

20 Retained earnings

5.600,00 $

8.000,00

2.400,00

21 Purchase

2.658,00 $

122,90

122,90

32,52

1.024,14

72.374,90

22 VAT charged
23 VAT paid
Obligations
with
24
administration (1%)
25 Bill of exchange

$
the

tax

509,76

10,24 $

$
$

2.658,00
509,76

42,76

436,07

26 Sale

1.024,14

27 Production Payroll

3.642,84

3.642,84

28 Social Benefits payable

8.214,16

8.514,16

29 Interest

123,61

123,61

30 Advertising

800,00

800,00

32 Basic Services

$
300,00
$ 106.442,07

TOTAL

MANAGER

436,07

300,00

106.442,07

72.674,90

ACCOUNTANT

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001
INCOME STATEMENTS
OCTOBER 01 TO DECEMBER 31, 2015

MANAGER

ACCOUNTANT

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001
BALANCE SHEET
OCTOBER 01 TO DECEMBER 31, 2015
FOLIO N_____01_____

MANAGER

ACCOUNTANT

PAPER TRAIL OFFICE SUPPLIES S.A


TAXPAYER ID #: 0796558756001
CASH FLOW STATEMENTS
OCTOBER 01 TO DECEMBER 31, 2015

CASH FLOW FROM OPERATIONS


CASH GENERATED FROM SALES

100.000,00

PAYMENTS TO SUPPLIERS AND EMPLOYEES

(50.000,00)

PAYMENTS ON DEBTS

(10.000,00)

PAYMENT ON TAXES

(7.000,00)

NET CASH FLOW FROM OPERATING ACTIVITIES

33.000,00

CASH FLOW FROM INVESTING


PAYMENTS FOR NEW INVESTMENTS
DIVIDENDS RECEIVED

(7.000,00)
4.000,00

NET CASH FLOW FROM INVESTING

(3.000,00)

CASH FLOW FROM FINANCING


DEBT INCREASES
DIVIDENDS PAID TO STOCKHOLDERS

4.000,00
(8.000,00)

NET CASH FLOW FROM FINANCING ACTIVITIES

(4.000,00)

NET CASH FLOW

3.000,00
300000,00

CASH BALANCE, BEGINNING OF YEAR


330000,00
CASH BALANCE, END OF YEAR

MANAGER

ACCOUNTANT

CALCULATIONS

OCTOBER, 5

600 * 0,03 =

18,00

50 * 18,00 = 900,00
6 * 30,00 = 180,00
75 * 4,00 = 300,00
15 *130,00= 1950,00
10 * 90,00 = 900,00
4248,00
+ 509,76

Purchase rate 12%


V.A.T. 12%

4757,76
-

42,48

- 4715,28

Income tax withholding


Bank

OCTOBER, 18

10 * 35,00 = 350,00
5 * 150,00 = 750,00
982,14
+ 117,86

Sale (Mr . Juan Prez)


V.A.T. 12%

1100,00
-

9,82 Income tax withholding


1090,18

60% = 654,11 Cash


40% = 436,07 Accounts receivable

OCTOBER, 28

8 * 3,00 = 24,00
12 * 1,50 = 18,00
42,00
+

Sale (Ramirez Company)

5,04
47,04

- 0,42
46,62

Income tax withholding


Cash

OCTOBER, 31
CHARGE

HOURS

ACCOUNTANT

2 EXTRAORDINARY

3 OVERTIME

ADMINISTRATOR

3 EXTRAORDINARY

HEAD OF SALES

2 OVERTIME

Accountant
1300,00 / 240 = 5,42 * 2 = 10,83
x 2
21,67 EXTRAORDINARY
1300,00 / 240 = 5,42 * 1,5 = 8,13
x

24,39 OVERTIME

Administrator
1500,00 / 240 = 6,25 * 2 = 12,50
x

37,50 EXTRAORDINARY

Head of Sales
720,00 / 240 = 3 * 1,5 = 4,50
x 2
9,00 OVERTIME

Commissions
Head of Sales 0,80 %= 8,19
1024,14
Selling 1% = 10,24

Income tax

Mario Flores Len (accountant)


1346,06 x 12= 16.152,72 - 13.770,00= 2.382,72 x 10%=238,27 + 149,00= 387,20/12= 32,27

Wilson Barzallo Espinoza ( Administrator)


1537,50 x 12= 18.450,00 17.210,00 = 1.240,00 x 12% = 148,80 + 493,00 = 641,80/12=
53,48

NOVEMBER, 10 Canceled the first share of Bank Loan.

AMORTIZATION SCHEDULE
CAPITAL
INTEREST
T.DIVIDENDS

N
1
2
3
4
5
6
7
8
9
10
11
12

$
$
$
$
$
$
$
$
$
$
$
$

833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33

$
$
$
$
$
$
$
$
$
$
$
$

116,67
106,94
97,22
87,50
77,78
68,06
58,33
48,61
38,89
29,17
19,44
9,72

$
$
$
$
$
$
$
$
$
$
$
$

950,00
940,28
930,56
920,83
911,11
901,39
891,67
881,94
872,22
862,50
852,78
843,06

BALANCE
$ 10.000,00
$ 9.166,67
$ 8.333,33
$ 7.500,00
$ 6.666,67
$ 5.833,33
$ 5.000,00
$ 4.166,67
$ 3.333,33
$ 2.500,00
$ 1.666,67
$
833,33
$
-

NOVEMBER, 22 Canceled $800,00 of Advertising of the company with cash.

DECEMBER, 10 Canceled the second share of Bank Loan and the interest.

N
1
2
3
4
5
6
7
8
9
10
11
12

AMORTIZATION SCHEDULE
CAPITAL
INTEREST
T.DIVIDENDS
$
$
$
$
$
$
$
$
$
$
$
$

833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33
833,33

$
$
$
$
$
$
$
$
$
$
$
$

116,67
106,94
97,22
87,50
77,78
68,06
58,33
48,61
38,89
29,17
19,44
9,72

$
$
$
$
$
$
$
$
$
$
$
$

950,00
940,28
930,56
920,83
911,11
901,39
891,67
881,94
872,22
862,50
852,78
843,06

BALANCE
$ 10.000,00
$ 9.166,67
$ 8.333,33
$ 7.500,00
$ 6.666,67
$ 5.833,33
$ 5.000,00
$ 4.166,67
$ 3.333,33
$ 2.500,00
$ 1.666,67
$
833,33
$
-

DECEMBER 19 Realiced anual Depreciation expense:

ANUAL DEPRESCATION
EXPENSE

Description:

Computing Equipment

Unit Price:

1400,00

Residual Value:

200,00

Value to depreciate:

1200,00

Years Useful Life:

YEARS

ANNUAL
DEPRECIATION

ACCUMULATED VALUE IN BOOKS


DEPECIATION

1400,00

300,00

300,00

1100,00

300,00

600,00

800,00

300,00

900,00

500,00

300,00

1200,00

200,00

Description:

Land

Unit Price:

20000,00

Residual Value:

2400,00

Value to depreciate:

17600,00

Years Useful Life:

22

YEARS

ANNUAL

ACCUMULATED

DEPRECIATION

DEPECIATION

VALUE IN BOOKS

20000,00

0
1

800,00

800,00

19.200,00

800,00

1.600,00

18.400,00

800,00

2.400,00

17.600,00

800,00

3.200,00

16.800,00

800,00

4.000,00

16.000,00

800,00

4.800,00

15.200,00

800,00

5.600,00

14.400,00

800,00

6.400,00

13.600,00

800,00

7.200,00

12.800,00

10

800,00

8.000,00

12.000,00

11

800,00

8.800,00

11.200,00

12

800,00

9.600,00

10.400,00

13

800,00

10.400,00

9.600,00

14

800,00

11.200,00

8.800,00

15

800,00

12.000,00

8.000,00

16

800,00

12.800,00

7.200,00

17

800,00

13.600,00

6.400,00

18

800,00

14.400,00

5.600,00

19

800,00

15.200,00

4.800,00

20

800,00

16.000,00

4.000,00

21

800,00

16.800,00

3.200,00

22

800,00

17.600,00

2.400,00

Description:

Ofice Fornitures

Unit Price:

1000,00

Residual Value:

100,00

Value to depreciate:

900,00

Years Useful Life:

YEARS

ANNUAL
DEPRECIATION

ACCUMULATED VALUE IN BOOKS


DEPECIATION

1000,00

100,00

100,00

900,00

100,00

200,00

800,00

100,00

300,00

700,00

100,00

400,00

600,00

100,00

500,00

500,00

100,00

600,00

400,00

100,00

700,00

300,00

100,00

800,00

200,00

100,00

900,00

100,00

Description:

Vehicles

Unit Price:

30000,00

Residual Value:

5000,00

Value to depreciate:

25000,00

Years Useful Life:

YEARS

ANNUAL
DEPRECIATION

ACCUMULATED VALUE IN BOOKS


DEPECIATION

5000,00

30000,00

5000,00

5000,00

25000,00

5000,00

10000,00

20000,00

5000,00

15000,00

15000,00

5000,00

20000,00

10000,00

5000,00

25000,00

5000,00

DECEMBER, 21 The members agree distributed the 70% of the retained earnings

RETAINED EARNINGS
$8.000,00 X 70%= $ 5.600,00

.
DECEMBER, 27 Canceled in cash the Basic Services for the month of October
and November $ 300,00. ( CASH)
BASIC SERVICES
$ 300,00

VOCABULARY
ASSETS: An asset is an asset that the company owns and can converters in cash or cash
equivalents.

Cash: It is the liquid element owned by the company, that is, it is money. The
company uses this cash to meet its immediate obligations

Accounts Receivable: It is where increases and cuts linked to the sale of different
concepts to products or services are recorded. This account consists of bills of
exchange, credit and promissory notes in favor of the company.

Inventory: They are tangible assets that are held for sale in the ordinary course of
business or to be consumed in the production of goods or services for further
marketing.

Fixed Assets: It is an asset of a company, whether tangible or intangible, which can


not become liquid short-term and are usually necessary for the operation of the
company and not intended for sale.

Accumulated Depreciation: Is the total amount of the devaluation that took over a
business over the life of each asset. Usually, a company must record depreciation
expense each month, then the depreciation expense becomes part of accumulated
depreciation to track the total depreciation.

LIABILITIES: The liability is debt that the company has, as reflected in the balance sheet
comprises the current obligations of the company are rooted in past financial transactions.

Accounts Payable: Accounts Payable arising on the purchase of material goods


(inventories), services received, expenses incurred and acquisition of fixed assets or
investments in hiring process.

Taxes Payable: Taxes are benefits today usually money, the state and other public
entities, that they claimed, by virtue of its coercive power, in the form and amount
determined unilaterally and without special consideration in order to meet the needs
collective.

Wages Payable: It is the account where the debts incurred by the company to its
employees and should be paid in a stipulated time period is recorded.

Notes Payable: Is the account where the documents certifying transactions such as
buying real estate or equipment, goods, and other documents replace some of these

debts on open account such as letters, notes and other recorded depending on who is
this account should be separated.
STOCKHOLDERS' EQUITY: The set of produced goods used to produce other goods.
Capital in financial sense is all money that was not consumed by its owner, but has been
saved and placed in the financial market, either buying stocks, bonds, public funds, or
making deposits in depository institutions.
Common Stock: Registered common shares, representing the capital of the true
owners of society; because they are the ones with deliberative power.
Retained Earnings: The balance of this account at the time of the initial adjustment
must be compared with the balance of the account Accumulated at the same date; the
debtor is a restriction on the payment of dividends in cash and shares.
Revenue: The company receives money or born receivables in its favor, it will effective on
the dates stipulated. Income occurs when business assets increases and this increase is not
due to new members' shares.
Sales returns and allowances: The account records the value of the returned goods
or bonuses given or made by customers; increases by debit, the record is of the form.
Expenses: In an industrial, commercial or service provision business to function normally
finds it unavoidable to acquire certain goods and services such as: labor, electricity,
telephone, etc.
Cost of Goods Sold: The cost of sales is the cost incurred to sell an asset, or to
provide a service. It is the value that has been incurred to produce or purchase a
commodity to be sold.
Depreciation Expense: Depreciation expenses are periodic savings going by a
company to the end of the life of an asset, the company has a save to renew the asset
(buy one later).
Payroll Tax Expense: These taxes are business expenses and are recorded as debits
to expense account, up to this point the description of payroll taxes has been linked
to taxes that are required to pay employees and withholding on their wages.
Rent Expense: This account represents the obligation of the company to pay bills,
leases, and other equipment at the time they become due.