please answer

As the Financial and Accounting Analyst of the company, you are required to arrange the accounts below and prepare a proper adjusted trial balance and to prepare the Income Statement, Statement of Changes in Equity and Statement of Financial Position of Sarmiento Auditing Services. Promptness is part of the score which is composed of the following: Accounts Payable P 63,500 Accounts Receivable 198,000 Accumulated Depreciation- Building 1 10,000 Accumulated Depreciation- Office Equipment 120,000 Auditing Revenues 1,361,500 Building 750,000 Cash 1 18,500 Depreciation Expense- Building 55,000 Depreciation Expense- Office Equipment 60,000 Sarmiento, Capital, 01/01/2020 1,193,500 Sarmiento, Drawings 165,000 Land 75,000 Notes Receivable 60,000 Office Equipment 362,500 Office Supplies Expense 96,000 Office Supplies 28,000 Professional Development Expense 86,500 Rent Expense 52,500 Salaries Expense 735,000 Salaries Payable 30,500 Travel Expense 41,000 Utilities Expense 18,000 Additional information: During the year, Sarmiento invested additional P22,000 in the business. II.ESSAY Answer the given questions briefly but substantially in not more than 5 sentences. 1. After preparing the income statement, is the entity profitable or not? Justify your claim. 2. Based from the statement of financial position, does the entity has the ability to pay its current obligations? Why do you say so