Please help with the adjustments and #8 the preparation of financial statements.

Moreover, the balances should be adjusted to the following information: 3. The ending fuel inventory is valued at 14,000. 4 The ending inventory of victuals is valued at 5,000 5. Depreciation Expense for 20X2 is: Depreciation Expense for Buildings: 45,000 Depreciation Expense for Vessels: 50,000 Depreciation Expense for Furniture: 15,000 . Prepaid Insurance covers the period 1/1/20X2 - 31/12/20X3 Charter revenues received in advance on 7/12 have been earned. Charter revenues received in advance presented on the trial balance cover the period 1/7/20X2 - 30/6/20X3 The transportation service agreed on 3/12 has been completed by 80%. The rest service will be completed next year. Interest Expense for 20X2 is 75,000 9. There are General Expenses 3,000 that have not been recognized and paid yet. The fair value of land is 600,000. ABC presents land on fair values. 11. Tax Expense is estimated 20% of net income before taxes provided that net income is positive. In case of a loss, tax expense is zero. Taxes are to be paid in 20X3. You are finally informed that ABC wants to declare dividends 88,000 from retained earnings. T 67ess w= 8 Assignment Exercise (50%) In this part of your assignment you face a revision exercise on the most important topics covered during the lectures. Again, team work is essential, but make sure that each member of the team feels confident about all the parts of the solution. Accounting requires a complete knowledge of all technical concepts, and therefore, the participation of each team member in all aspects of the solution is pivotal ABC is a maritime firm that provides transportation services and hires out vessels to charter firms. Using the following information, you are required to: Make the journal entries for December and post them to the General Ledger Prepare a Trial Balance for December 1. Make the necessary correction entries and post them to the General Ledger 4. Make the adjusting entries and post them to the General Ledger 5. Prepare an Adjusted Trial Balance for December 6. Make the closing entries and post them to the General Ledger 7. Prepare the Post-closing Trial Balance for December 8. Prepare all the financial statements. The income statement should present operating expenses by activity. ABC allocates operating expenses according to the following rates: Production: 70%, Administration: 20%, and Selling Activity: 10%. However, Management Fees are allocated exclusively to Administration Activity, whereas Fuel Expenses, Victual Expenses, and Depreciation Expense of Vessels are allocated exclusively to Production Activity. ABC Ltd, Maritime Firm Trial Balance 30/11/20X2 N. Account Balance Debit Credit 11 Licenses 100.000 2 Buildings 550.000 3. Fuel Supplies 20,000 4. Land 500,000 S. Salaries Expense 250,000 6. Furniture 150,000 7. Vessels 1.950.000 8. Accounts Receivable 955.000 9. Marketable Securities 15.000 10. Bank Deposits 680,000 11. Cash 390,000 12. Prepaid Insurance Expense 50,000 13. Notes Receivable 165.000 14. Victuals 3,000 IS. Management fees 200,000 16. Share Capital 3,650,000 17. Retained Eamings 263.000 18 Mortgage Loan 750,000 19. Checks Payable 35,000 20. Accounts Payable 43,000 21 Service Revenue 900.000 22 Notes Payable 50,000 23 Charter Revenues Received in Advance 12,000 24. Depreciated Buildings 75,000 25 Depreciated Vessels 170,000 26 Depreciated Furniture 30,000 TOTAL 5,978,000 5,978,000 3 8 Transactions for December 11 Hire of an employee with a monthly salary 1,000. 2/12 Purchase of fuel supplies 26,000 on account 3/27 Receive cash 30,000 in advance of a transportation service. 402 Provision of transportation services for 50,000 on account. 542 Cash payment 80,000 in advance for the acquisition of a vessel 100,000 670 The vessel that the payment in advance was made on 5/12 is received. The rest amount is settled with notes 7/12/ Hiring out a vessel to a chartering firm for 40,000. The chartering period is the period 7/12-27/12. The money was transferred to ABC's bank account. Receipt of a long-term bank loan 20,000. The money was transferred to ABC's bank account 9/19/ Purchase of various victuals 15,000 with checks. 1042/ Receipt cash of 30,000 in advance for the sale of a vessel to firm XYZ in the future. 11942 Sale of a vessel for 50,000 to firm XYZ. XYZ paid in advance 30.000 on 10/12. The rest amount is settled with notes. The acquisition cost of the vessel was 80,000. Until 31/12/20X1, the vessel has been depreciated by 60%. The depreciation expense for the period 1/1/20X2-11/12/20X2 is estimated to 4.000 for the bow real Land with a cost of 50,000 is sold for 60,000 in cash (6/12) A fire destroys furniture. The acquisition cost of the furniture was 8,000. Until 31/12/20X1 the furniture had been depreciated 4,000. Depreciation expense for the period 1/1/20X2-13/12/20X2 is estimated to 1,000. 14/2 ABC makes an agreement with a shipbroker to receive ship-broking services for the next year. The total fee will be 60,000. 15/12 The ABC shareholders contribute 100,000 in cash. 3642) ABC recognizes Salaries Expense 50,000. All employees were paid except the employee that was hired on 1/12 who was ill. 3112/ The internal audit found the following accounting errors: A purchase of furniture 5,000 has been recorded as an equal purchase of buildings. 2. The Depreciation Expense- Buildings of the previous fiscal year was recorded 10,000 more in 31/12/20X1. Moreover, the balances should be adjusted to the following information: 3. The ending fuel inventory is valued at 14,000. 4 The ending inventory of victuals is valued at 5,000 5. Depreciation Expense for 20X2 is Depreciation Expense for Buildings: 45,000 Depreciation Expense for Vessels: 50,000 Depreciation Expense for Furniture: 15.000 6. Prepaid Insurance covers the period 1/1/20X2 - 31/12/20X3 72 Charter revenues received in advance on 7/12 have been eamed. Charter revenues received in advance presented on the trial balance cover the period 1//20X2 - 30/6/20X3 The transportation service agreed on 3/12 has been completed by 80%. The rest service will be completed next year Interest Expense for 20X2 is 75,000 9. There are General Expenses 3,000 that have not been recognized and paid yet. LOT The fair value of land is 600,000. ABC presents land on fair values. 11. Tax Expense is estimated 20% of net income before taxes provided that net income is positive. In case of a loss, tax expense is zero. Taxes are to be paid in 20X3. You are finally informed that ABC wants to declare dividends 88,000 from retained eamings 8 8 Moreover, the balances should be adjusted to the following information: 3. The ending fuel inventory is valued at 14,000. 4 The ending inventory of victuals is valued at 5,000 5. Depreciation Expense for 20X2 is: Depreciation Expense for Buildings: 45,000 Depreciation Expense for Vessels: 50,000 Depreciation Expense for Furniture: 15,000 . Prepaid Insurance covers the period 1/1/20X2 - 31/12/20X3 Charter revenues received in advance on 7/12 have been earned. Charter revenues received in advance presented on the trial balance cover the period 1/7/20X2 - 30/6/20X3 The transportation service agreed on 3/12 has been completed by 80%. The rest service will be completed next year. Interest Expense for 20X2 is 75,000 9. There are General Expenses 3,000 that have not been recognized and paid yet. The fair value of land is 600,000. ABC presents land on fair values. 11. Tax Expense is estimated 20% of net income before taxes provided that net income is positive. In case of a loss, tax expense is zero. Taxes are to be paid in 20X3. You are finally informed that ABC wants to declare dividends 88,000 from retained earnings. T 67ess w= 8 Assignment Exercise (50%) In this part of your assignment you face a revision exercise on the most important topics covered during the lectures. Again, team work is essential, but make sure that each member of the team feels confident about all the parts of the solution. Accounting requires a complete knowledge of all technical concepts, and therefore, the participation of each team member in all aspects of the solution is pivotal ABC is a maritime firm that provides transportation services and hires out vessels to charter firms. Using the following information, you are required to: Make the journal entries for December and post them to the General Ledger Prepare a Trial Balance for December 1. Make the necessary correction entries and post them to the General Ledger 4. Make the adjusting entries and post them to the General Ledger 5. Prepare an Adjusted Trial Balance for December 6. Make the closing entries and post them to the General Ledger 7. Prepare the Post-closing Trial Balance for December 8. Prepare all the financial statements. The income statement should present operating expenses by activity. ABC allocates operating expenses according to the following rates: Production: 70%, Administration: 20%, and Selling Activity: 10%. However, Management Fees are allocated exclusively to Administration Activity, whereas Fuel Expenses, Victual Expenses, and Depreciation Expense of Vessels are allocated exclusively to Production Activity. ABC Ltd, Maritime Firm Trial Balance 30/11/20X2 N. Account Balance Debit Credit 11 Licenses 100.000 2 Buildings 550.000 3. Fuel Supplies 20,000 4. Land 500,000 S. Salaries Expense 250,000 6. Furniture 150,000 7. Vessels 1.950.000 8. Accounts Receivable 955.000 9. Marketable Securities 15.000 10. Bank Deposits 680,000 11. Cash 390,000 12. Prepaid Insurance Expense 50,000 13. Notes Receivable 165.000 14. Victuals 3,000 IS. Management fees 200,000 16. Share Capital 3,650,000 17. Retained Eamings 263.000 18 Mortgage Loan 750,000 19. Checks Payable 35,000 20. Accounts Payable 43,000 21 Service Revenue 900.000 22 Notes Payable 50,000 23 Charter Revenues Received in Advance 12,000 24. Depreciated Buildings 75,000 25 Depreciated Vessels 170,000 26 Depreciated Furniture 30,000 TOTAL 5,978,000 5,978,000 3 8 Transactions for December 11 Hire of an employee with a monthly salary 1,000. 2/12 Purchase of fuel supplies 26,000 on account 3/27 Receive cash 30,000 in advance of a transportation service. 402 Provision of transportation services for 50,000 on account. 542 Cash payment 80,000 in advance for the acquisition of a vessel 100,000 670 The vessel that the payment in advance was made on 5/12 is received. The rest amount is settled with notes 7/12/ Hiring out a vessel to a chartering firm for 40,000. The chartering period is the period 7/12-27/12. The money was transferred to ABC's bank account. Receipt of a long-term bank loan 20,000. The money was transferred to ABC's bank account 9/19/ Purchase of various victuals 15,000 with checks. 1042/ Receipt cash of 30,000 in advance for the sale of a vessel to firm XYZ in the future. 11942 Sale of a vessel for 50,000 to firm XYZ. XYZ paid in advance 30.000 on 10/12. The rest amount is settled with notes. The acquisition cost of the vessel was 80,000. Until 31/12/20X1, the vessel has been depreciated by 60%. The depreciation expense for the period 1/1/20X2-11/12/20X2 is estimated to 4.000 for the bow real Land with a cost of 50,000 is sold for 60,000 in cash (6/12) A fire destroys furniture. The acquisition cost of the furniture was 8,000. Until 31/12/20X1 the furniture had been depreciated 4,000. Depreciation expense for the period 1/1/20X2-13/12/20X2 is estimated to 1,000. 14/2 ABC makes an agreement with a shipbroker to receive ship-broking services for the next year. The total fee will be 60,000. 15/12 The ABC shareholders contribute 100,000 in cash. 3642) ABC recognizes Salaries Expense 50,000. All employees were paid except the employee that was hired on 1/12 who was ill. 3112/ The internal audit found the following accounting errors: A purchase of furniture 5,000 has been recorded as an equal purchase of buildings. 2. The Depreciation Expense- Buildings of the previous fiscal year was recorded 10,000 more in 31/12/20X1. Moreover, the balances should be adjusted to the following information: 3. The ending fuel inventory is valued at 14,000. 4 The ending inventory of victuals is valued at 5,000 5. Depreciation Expense for 20X2 is Depreciation Expense for Buildings: 45,000 Depreciation Expense for Vessels: 50,000 Depreciation Expense for Furniture: 15.000 6. Prepaid Insurance covers the period 1/1/20X2 - 31/12/20X3 72 Charter revenues received in advance on 7/12 have been eamed. Charter revenues received in advance presented on the trial balance cover the period 1//20X2 - 30/6/20X3 The transportation service agreed on 3/12 has been completed by 80%. The rest service will be completed next year Interest Expense for 20X2 is 75,000 9. There are General Expenses 3,000 that have not been recognized and paid yet. LOT The fair value of land is 600,000. ABC presents land on fair values. 11. Tax Expense is estimated 20% of net income before taxes provided that net income is positive. In case of a loss, tax expense is zero. Taxes are to be paid in 20X3. You are finally informed that ABC wants to declare dividends 88,000 from retained eamings 8 8