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CASE 1: PM Company (ALREADY ANSWERED CASE #1) PM Company provided the following adjusted account balances on December 31, 2X14: Wages payable P250,000 Cash 200,000

CASE 1: PM Company (ALREADY ANSWERED CASE #1)

PM Company provided the following adjusted account balances on December 31, 2X14:

Wages payable

P250,000

Cash

200,000

Mortgage payable

1,500,000

Dividends payable

150,000

Prepaid rent

100,000

Inventory

800,000

Sinking fund

500,000

Short-term investments

300,000

Taxes payable

220,000

Accounts payable

240,000

Accounts receivable

350,000

Requirement: Compute for the total current assets on December 31, 2X14 (5 points). (ALREADY DONE AND THE ANSWER IS P 1,750,000 for total current assets on Dec 31, 2x14.)

CASE 2: Margarita Gonzales Law Office (THIS IS THE ONLY CASE I NEED HELP) :((

Margarita Gonzales Law office was established on January 1, 2X20, and the following events occurred during the first month of operation:

  • Margarita invested P100,000 cash as working capital to start her business
  • Purchase of furnitures for P30,000, 50% paid in cash and 50% taken as a credit
  • She signed two (2) service contracts:
    1. with XYZ for services performed during the month in the amount of P4,000; and
    2. with ABC for services that will be performed during the first week of next month for P5,000. Margarita received an advance of P20,000 with the signature of this contract.
  • The furniture bought has a useful life of 30-month and should be depreciated straight line.
  • Margarita agreed to pay her assistant P15,000 for the service performed of which she paid already P10,000
  • XYZ paid P20,000
  • Rent for the month of P10,000 was paid through a bank transfer
  • An electricity bill for P3,000 was received by mail

Requirement: Based on the given information, PLEASE DO THE FOLLOWING. :(.

  1. Necessary journal entries; and
  2. Statement of financial position for the month ending January 31, 2020.

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