Reference no: EM133139105

Question - The statement of Financial Position Items of ABC Corp were as follows at the close of business on February 28, 2022:

Accounts Payable - Php 8,500

Accounts Receivable - Php 1,250

Building - Php 45,500

Cash - Php 7,400

Equipment and Fixtures - Php 20,000

Land - Php 55,000

Share Capital - Php 50,000

Notes Payable - ?

Retained Earnings - Php 4,090

Supplies - 3,440

The transactions occurring during the first week of March were:

March 3 - Additional share capital was sold for Php 30,000. The accounts payable were paid in full. (No payment was made on the notes payable)

March 6 - More furniture was purchased on account at a cost of Php 18,000 to be paid within 30 days. Supplies were purchased for Php 1,000 cash from a restaurant supply center that was going out of business. These supplies would have cost Php 1,875 if purchased under normal circumstances.

March 1 - 6 - Revenues of Php 5,500 were earned and paid in cash. Expenses required to earn the revenues of Php 4,000 were incurred and paid in cash.

Required -

a. Make a statement of financial position at February 28, 2022.

b. Make a statement of financial position at March 6, 2022. Also prepare an income statement and a cash flow statement for the period March 1-6, 2022. In your cash flow statement, treat the purchase of supplies and the payment of accounts payable as operating activities.