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  650a.1. for production 400a.2. for distribution 150a.3. for administration 100b.       Interest expenses 40c.      row material expenses 150d.      income tax expenses 150e.      merchandise expenses 10f.       consumable expenses 300f.1. for production 200f.2. for distribution 70f.3. for administration 30g.      Finish goods revenues 1.400h.      Other op expenses.210i.       Financial expenses 46j.       Other taxes expenses 20k.      Finish goods -31.12.N 200l.       Costs CSS 210:l.1. for production 130l.2. for distribution 50l.3. for administration 30m.    INTEREST REVENUE 60n.       Services expenses 10o.      other financial revenue 10p.      seles revenue 50q.      depreciation expenses 250q.1. for production 180q.2. for distribution 20q.3.for administration 50r.       revenue from dividends 120

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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)
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