I. PREPARATION OF INCOME STATEMENT AND BALANCE SHEET HEALTHY PHARMACY had the following beginning balances: DR in pesos CR in pesos 3,070 2,160 2,800 70 ACCOUNT Accounts payable Accounts receivable Accumulated depreciation Allowance for doubtful accounts Cash Property, plant, and equipment Inventories Notes payable Owner's equity 1,440 6,200 1,730 600 4,990 During the period, the following transactions occurred: 1. Purchased inventory on account, P1,300 2. Paid employees, P730 3. Sold goods for cash, P1,940 4. Sold goods on credit P1,810 5. Overhead and other expenses paid in cash, P900 6. Collection of accounts receivable, P1,510 7. Paid certain accounts payable, P1,720 8. Received cash for revenue applicable to the next period, P650 9. Increased the current note payable by P200 10. Physical inventory showed ending balance of P1,750 11. Depreciation expense, P300 REQUIRED: Prepare:_(10 points each, total 20 points) 1. Prepare the Income Statement for the period, ignore taxes 2. Prepare the ending Balance Sheet