Question $1($continued$)1.$ YDC purchased an insurance policy April $1,2023.$ The term of the policy was one year. The companys accountant debited insurance expense and credited cash on April $1.$ No adjustments have been recorded since that date. $2.$ No depreciation expense has been recorded for the year. Both the office equipment and the truck are depreciated using the straight$-$line depreciation method. The useful life of the office equipment is $10$ years, and no residual value is expected. The useful life of the trucks is $8$ years, and the company expects to sell the trucks at that time for $$15,000\mathrm{.}3.$ Occasionally, YDC receives advances from customers for specialized products. At year$-$end, $$15,000$ of these products had been delivered to customers. No adjustment was made during the year. The cost of these goods sold was $$9,000\mathrm{.}4.$ When reviewing the invoices received from suppliers and service providers in January $2024,$ the accountant found an invoice from Acres Maintenance Company for repair work done in December $2023$ in the amount of $$8,000.$ The invoice had not been recorded at year end. Repairs and maintenance work are usually recorded as other operating expenses$\mathrm{.}5.$ On October $1,$ YDC launched a social media marketing campaign. On that date, YDC signed a six$-$month contract with Orien Analytics. Orien Analytics agreed to organize and run the marketing campaign. The total cost of the contract was $$30,000,$ payable in two amounts. The first payment of $$15,000$ was due on January $10,2024,$ and the balance was due at the end of the contract. The campaign started on November $1,2023$ and continued through the end of the year and into $2024.$ YDC was very pleased with the initial results of the marketing campaign$\mathrm{.}6.$ The note payable arose from the purchase of long$-$term assets. The note is due on June $30,2026.$ Interest is paid annually on June $30$th$.$ The annual rate of interest is $6\%.7.$ The Board of Directors of YDC declared a dividend of $$35,000$ on December $31,2023.$ The dividend will be paid on January $31,2024.8.$ Supplies on hand at December $31,2023,$ are $$3,000.9.$ YDC issued shares during the year with a value of $$50,000.$ The journal entry was correctly recorded as a debit to cash and a credit to common shares for $$50,000.$Required: $1.$ Prepare any adjusting or correcting journal entries for the above$-$noted items. Show your work. $2.$ Prepare the adjusted trial balance. A template is provided in the Excel file. $3.$ Prepare the following financial statements: a$.$ Statement of Income for the year ending December $31,2023$b$.$ Statement of Changes in Shareholders Equity for the year ending December $31,2023$c$.$ Statement of Financial Position as at December $31,20234.$ Prepare the closing entries for the year ended December $31,2023.5.$ YDC sales revenue declined by $10\%$ in $2023,$ compared to $2022,$ which put pressure on its gross margin, which was $52\%$ in $2022.$ Two of YDCs suppliers have expressed concern about the liquidity of YDC in light of current economic conditions and are concerned about future profitability of YDC$.$ Management of YDC wants to assure the suppliers that the short$-$term liquidity position is acceptable and that it expects sales revenue to increase by $10\%$ in $2024$and gross margin to be approximately $50\%.$ Comment on YDCs liquidity. Using YDCs financial statements that you have competed for $2023,$ comment of the prospect of higher net income in $2024.$ How does the format of the income statement help you analyze future profitability?