Assume the following information regarding the ABC publishing company:

$1.$ ABC was founded on August $1,2020.$ ABC issued $10,000$ shares of common stock, $10$ par, for cash at $10,4$ per share.

$2.$ On September $1,2020,$ ABC rented a building for a five$-$year period $(1/9/2020-31/8/2025).$ The rent agreement specified that the monthly rent amounted to $600.$ On September $1,2020,$ ABC paid in advance the total amount of future rents, $36,000(600$ X $60$ months$).$

$3.$ On October $1,2020,$ ABC purchased a twelve$-$month fire insurance policy, paying the $1,500$ premium on October $1,2020.$ The policy was dated October $1,2020,$ and expired on September $30,2021.$ The insurance policy was renewed on October $1,2021.$ The premium was set to $1,200.$

$4.$ ABC paid for wages in years $2020,$ and $2021,$ the amounts of $1,000$ and $900$ respectively.

$5.$ The revenues of ABC consisted of subscription for University and Public Libraries to journals published by ABC on a monthly basis. ABC received the following amounts paid by University and Public Libraries:

Subscription Amounts received $()$ Subscription period begins as at:

Two$-$years subscription $15,0001/9/2020$

Three$-$year subscription $45,0001/3/2021$

Three$-$year subscription $21,6001/12/2021$

$6.$ On September $1,2021,$ ABC increases its share capital by capitalizing the total amount of additional paid$-$in capital.

Required:

$1.$ Prepare all journal entries in ABC records for the years $2020$ and $2021$ and post entries to T$-$Accounts. Assume that the balances of accounts as at $31/12/2020$ and $31/12/2021$ are carried to next fiscal period $($no journal entry is required$).$

$2.$ Prepare the balance sheet $($statement of financial position$)$ and the Profit and Loss Account of ABC for the years $2020$ and $2021($ignore taxes$).$ Assume the Profit $($Loss$)$ is carried forward throughout the period $2020-2021.$ The fiscal year of ABC commences on January $1$ and ends on December $31$ of each year.