Please solve the following exercises: Exercise 1. The following information is available for company ABC as of 31December N: Land 500 Additional paid in capital (share premium)

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