CASE 1: PM Company

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 .

CASE 2: Margarita Gonzales Law Office

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, do the following :

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