Rutgers e$-$Terminal Ltd$.$ is a private corporation wholly owned by Mr$.$ Adonis Rutgers. Mr$.$ Rutgers also personally owns $40\%$ of the common shares of a company named Princeton Corp. A further $20\%$ of the Princeton common shares are held by Rutgers e$-$Terminal Ltd$.$ The bookkeeper for Rutgers e$-$Terminal prepared the following SFP: RUTGERS E$-$TERMINAL LTD$.$ Financial Situation For the year ending $31$ December $20$X$3$ Short$-$Term Assets Cash on hand $ $600$ Cash in the Royal Dominion chequing account $15,200$ Overdraft in the ScotiaTrust chequing account $3,800$ Accounts receivable $($includes credit balances of $$22,000)52,600$ Automobile held for resale, fully depreciated $($estimated market value, $$10,000)10,000$ Supplies on hand, at cost $1,800$ Inventory, at cost $($estimated market value, $$35,000)37,900$ Final month$$s rent on office space $($lease expires in $20$X$7)3,000$ Investment in shares of subsidiary $($market value, $$150,000)130,000$ $$247,300$ Long$-$Term Assets Furniture $40,000$ Warehouse $500,000$ Prepaid expenses $4,500$ Note receivable from customer $($issued $5$ March $20$X$1,$ due on Mr$.$ Rutger$$s demand$)30,000$ Loan receivable from shareholder $120,000694,500$ Total financial assets $$941,800$ Liabilities Payable to suppliers $$175,300$ Amounts on purchase orders issued $50,000$ Reserve for depreciation on furniture $10,000$ Reserve for depreciation on warehouse $75,000$ Mortgage due to the Montreal National Bank $380,000$ Common shares of Rutgers e$-$Terminal held by Mr$.$ Rutgers $150,000$ Accumulated surplus $101,500$ Total financial liabilities $$941,800$ Required: Prepare a corrected classified SFP$,$ using appropriate terminology. Zero Growth Ltd$.$ has completed financial statements for the year ended $31$ December $20$X$6.$ The financial statements have yet to be finalized or issued. The following events and transactions have occurred: The office building housing administrative staff was damaged due to a hurricane on $15$ January $20$X$7.$ On $15$ November $20$X$6,$ a customer sued the company for $$1,000,000$ based on a claim of negligence leading to personal injury; Zero is actively defending the suit and claims it is unfounded. Nothing has yet been recorded in the $20$X$6$ financial statements in relation to this event. On $1$ February $20$X$7,$ The company received a $$49,700$ income tax reassessment for $20$X$5.$ On $20$ December $20$X$6,$ Zero applied for a bank loan to replace an existing line of credit. The loan was granted on $2$ January $20$X$7.$ This event was not recorded in $20$X$6$ or reported in the draft $20$X$6$ financial statements. The company has reinterpreted a legal agreement entitling it to commission revenue for the sale of a client$$s products. Zero Growth$$s interpretation would entitle it to an extra $$60,000$ over and above amounts recognized in $20$X$6.$ The amount has not been recorded in the accounts. The client was billed for this amount in $20$X$6$ but has disagreed with Zero on the contract interpretation. Both parties have consulted their lawyers; resolution is not expected soon. On $1$ March $20$X$7,$ Zero Growth issued new common shares for cash. The new issue increased the total number of shares outstanding by $15\%.$ Required: Discuss the appropriate accounting treatment for the contingencies and subsequent events Please urgently help