Prepare a memo that summarizes relevant professional standards (standard and paragraph should be cited) related to each of the 6 issues and prepare any proposed journal entries. Discuss information that would be included in any note disclosures related to each of the six items (you need not draft formal note disclosures). Prepare entries for all misstatements you identify, regardless of the amount involved. That is, don't simply say no entry is needed because any amount involved would be immaterial. Assume that the current income is $2.997,216. For purposes of preparing journal entries, you may ignore income tax implications as any changes in taxes will be reflected later in the audit process after any entries have been posted to the working trial balance. Issue 1: Service Revenue ACE has included service revenue of $22,100 as a result of a number of one-year service policies sold late in December as an "experiment." These service policies became effective on January 1, 2019, or shortly thereafter. The policies are sold at an average of $600 per year per customer; the $22,100 represents the total cash received as of year-end (debit cash, credit service revenue. The $600 per customer amount was arrived at by an analysis of previous service provided on a "fee for service" basis to customers. The average cost to ACE was approximately $200 per visit, with an average of 1.7 visits per year to customers. While the service policies allow unlimited visits for service, ACE has restricted the number of policies available due to difficulties in calculating the costs associated with such policies. ACE estimates that the number service calls is likely to increase to about 4 per year, the cost is expected to decrease to around $150 per call. So, at this point, the program is projected to break even. The aggressive pricing of the service policies is due to (1) the experimental nature of the program and (2) a desire to maintain long-term customer loyalty for future purchases of equipment. Prepare a memo that summarizes relevant professional standards (standard and paragraph should be cited) related to each of the 6 issues and prepare any proposed journal entries. Discuss information that would be included in any note disclosures related to each of the six items (you need not draft formal note disclosures). Prepare entries for all misstatements you identify, regardless of the amount involved. That is, don't simply say no entry is needed because any amount involved would be immaterial. Assume that the current income is $2.997,216. For purposes of preparing journal entries, you may ignore income tax implications as any changes in taxes will be reflected later in the audit process after any entries have been posted to the working trial balance. Issue 1: Service Revenue ACE has included service revenue of $22,100 as a result of a number of one-year service policies sold late in December as an "experiment." These service policies became effective on January 1, 2019, or shortly thereafter. The policies are sold at an average of $600 per year per customer; the $22,100 represents the total cash received as of year-end (debit cash, credit service revenue. The $600 per customer amount was arrived at by an analysis of previous service provided on a "fee for service" basis to customers. The average cost to ACE was approximately $200 per visit, with an average of 1.7 visits per year to customers. While the service policies allow unlimited visits for service, ACE has restricted the number of policies available due to difficulties in calculating the costs associated with such policies. ACE estimates that the number service calls is likely to increase to about 4 per year, the cost is expected to decrease to around $150 per call. So, at this point, the program is projected to break even. The aggressive pricing of the service policies is due to (1) the experimental nature of the program and (2) a desire to maintain long-term customer loyalty for future purchases of equipment