Please solve the following exercises:
Exercise 1. The following information is available for company ABC as of 31December N:Land 500Additional paid in capital (share premium) 150Advance payments to suppliers (from which for inventories 200) 300Licenses 50Customers 600Prepayments 80Legal reserve 70Dividends payable 100Depreciation of plant and machinery 50Investments in associates 700Issued capital paid in (Share capital paid in) ??Sundry debtors 100Raw materials 60Plant and machinery 700Long term bank loans (of which becoming due in less than one year 150) 525Write downs of raw materials 5Cash at bank 30Provisions for guarantees to customers 500VAT payable 50Long term receivables 100Buildings 300Development costs (assets recognition criteria are fulfilled) 100Other reserves 700Salaries payable 200Depreciation of buildings 50Short term bank loans 150Finished goods 180Profit for the period 250Advances received from customer 100Short term financial investments 150Suppliers payable 100Bills of exchange payable 30Other taxes payable 50Deferred income 100
Required:a. Draw up the balance sheet b. Calculate issued capital (paid in capital).
Exercise 2. Using the following elements prepare an income statement by function and by nature (you must obtain the same result with both methods.
a. Personal expenses 650
a.1. for production 400
a.2. for distribution 150
a.3. for administration 100
b. Interest expenses 40
c. row material expenses 150
d. income tax expenses 150
e. merchandise expenses 10
f. consumable expenses 300
f.1. for production 200
f.2. for distribution 70
f.3. for administration 30
g. Finish goods revenues 1.400
h. Other op expenses.210
i. Financial expenses 46
j. Other taxes expenses 20
k. Finish goods -31.12.N 200
l. Costs CSS 210:
l.1. for production 130
l.2. for distribution 50
l.3. for administration 30
m. INTEREST REVENUE 60
n. Services expenses 10
o. other financial revenue 10
p. seles revenue 50
q. depreciation expenses 250
q.1. for production 180
q.2. for distribution 20
q.3.for administration 50
r. revenue from dividends 120
