Need the following:

1.Journal Entries

2. T-Accounts

3.Balance Sheet and Income Statement

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Attached are IFRS financial statements for Manchester United PLC. Assume that, although the format of their financial statements differs, the basic accounting principles are consistent with those weve discussed in class. All amounts are in thousands of pounds (000) unless noted otherwiseplease round to 000s. Note that Manchester Uniteds fiscal year ends on June 30, so 2013 refers to the fiscal year ending June 30, 2013. Assume that the 2013 soccer season also runs from July 1, 2012 to June 30, 2013. Assume a 25% tax rate throughout.

Part I: Your goal is to forecast an income statement, balance sheet and statement of cash flows for Manchester United (ManU) for 2013. For the purposes of this part, refer only to the attached summary financial statements and the following assumptions.

First please provide journal entries in the space provided below.

ManU has three primary lines of revenue commercial (merchandise sales), broadcasting and matchday revenue (tickets to games). Assume that ManU recognizes revenue from ticket sales and broadcasting rights when the associated matches are played, and recognizes revenues from merchandise sales when the merchandise is sold. When forecasting the balance sheet, assume that other non-current assets, other current liabilities and non-current liabilities will remain unchanged from 2012 to 2013.

1. Matchday Revenue (Ticket Sales): You forecast that ManU will earn 96,321 from tickets to games that are played during the 2013 season. Assume that ManU will sell some of the 2013 seats through game-day sales (30,844) and that the remainder (65,477) will be for season tickets sold in 2012 covering the 2013 season (deferred revenue on the balance sheet). Assume further that ManU will sell (for cash) 48,976 of tickets during 2013 for the 2014 season.

2. Broadcasting Revenue: Assume that contracts for media coverage are signed prior to the start of the season (e.g., contracts covering the 2013 season were signed in 2012), but the cash is received both during and after the end of the season (e.g., cash for the 2013 season media rights is received in 2013 and 2014). You forecast that ManU will earn 100,544 from broadcasting games during the 2013 season, of which 59,863 will be paid in cash during 2013 and 40,681 will remain uncollected (trade receivables in the current assets section on the balance sheet) at year end 2013. In addition, ManU will collect any amounts due it as of the beginning of 2013 during 2013. Finally, during 2013, ManU will sign a contract for 102,332 for rights to the 2014 season, payment to be received in 2014 and 2015.

3. Commercial Revenue (Merchandise): Assume that Manu charges royalties on merchandise sold rather than owning the inventory themselves. Assume that ManU will receive 131,136 in cash during 2013 for merchandise sold in 2013.

4. An unusual aspect of ManUs business is that they buy and sell player registrations (contracts) for cash. Basically, the idea is analogous to property, plant and equipmentwhen they buy a player registration, they depreciate it straight line over its life and record a sale if the players contract is ultimately sold. Assume that in 2013 they buy additional player registrations of 40,150 and record amortization totaling 37,700 on all player registrations. Assume further, that player registrations have a life of 5 years and that during 2013 they sell player registrations with a historical cost of 20,500 which are three years through their life at the time of sale and receive 10,800 of cash on the sale.

5. During 2013, ManU will buy property, plant and equipment (PP&E) for cash of 18,023 and record depreciation of 8,234. No PP&E will be sold during 2013.

6. Employees (including players) will earn 168,442 for services rendered in 2013. The ending balance in the compensation payable account will be 124,207. (You need to infer the amount paid to players to end up a balance of 124,207 in compensation payable.)

7. Other operating expenses for 2013 will be 41,287, all paid in cash during 2013.

8. Interest expense for 2013 will be 41,678, all paid in cash during 2013.

9. Taxes are paid in the first quarter of each year on the previous years profits. New taxes payable are recorded at year-end at 25% of pre-tax income.

10. The ending cash balance will be 114,066. Any excess cash is paid out as a dividend and any shortfall is made up by issuing stock.

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CONSOLIDATED INCOME STATEMENT
	2012	2013
Commercial revenue	117,611
Broadcasting revenue	103,991
Matchday revenue	98,718
Total Revenue	320,320
Employee compensation expense	(161,688)
Depreciation expense	(7,478)
Amortisation of players registrations	(38,262)
Other Operating Expenses	(41,963)
Total Operating Expenses	(249,391)
Profit on Disposal of Players	9,691
Operating Profit	80,620
Interest expense	(49,536)
Income before taxes	31,084
Income tax expense	(7,771)
Net Profit	23,313
Dividend Paid	10,098
Retained Profit	13,215

CONSOLIDATED BALANCE SHEET
	2012	2013
Assets
Property, plant and equipment
Cost	325,894
Accumulated depreciation	-78,028
Net book value	247,866
Players registrations
Cost	306,817
Accumulated amortisation	-194,418
Net book value	112,399
Other noncurrent assets	465,650	465,650
Non-current assets	825,915
Trade receivables	47,163
Cash	74,070
Current assets	121,233
Total assets	947,148
Liabilities and equity
Current income tax liability	7,771
Compensation payable	83,664
Deferred revenue	128,535
Other current liabilities	9,413	9,413
Total current liabilities	229,383
Non-current liabilities	482,668
Equity
Share capital	247,768
Retained earnings (deficit)	-12,671
Total equity	235,097
Total liabilities and equity	947,148