Claire Santos opened Little Steps and Sway Dance Studio which offers yoga, ballet, and stretch classes for children. The following are her transactions for March 2022: 1 Opened a bank account with a cash deposit of P500,000 for the business. 2 Signed a contract of lease and paid P30,000 for the month’s rental to Robinson’s Place. 3 A computer and fax machine, personal properties of Ms. Santos purchased at P70,000 were transferred to the studio. 4 Purchased a stereo set at P250,000 from Music Depot. Terms: P50,000 DP and balance payable in two months starting at the end of the month. 5 Purchased yoga mats and other supplies for P15,000 cash. 8 Ms. Santos withdrew P10,000 for personal use. 10 Bought furniture and fixtures from a friend, Ms. Dizon, and gave a 50% down payment of P20,000. Issued a note for the balance due for payment within 15 days. 15 Received P150,000 cash as payment of O.B. Montessori for the yoga classes provided by Little Steps and Sway Dance Studio to its students. 25 Paid the promissory note which matures today. 26 Received the telephone and electricity bills from PLDT and Meralco amounting to P2,500 and P13,000, respectively. They are due to be paid on April 15. 30 Paid the first installment to Music Depot. 31 Paid the salary of her assistant at P5,000.

a. Analyze the transactions using the table below.

b. Prepare the four financial statements as of March 31, 2022.

DATE ASSETS LIABILITIES OWNER’S EQUITY Explanation of changes in owner’s equity March 01 Total P____________________ = P_____________

Answer rating: 100% (QA)

Answer a DATE ASSETS LIABILITIES OWNERS EQUITY Explanation of changes in owners equity March 01 Total P500000 P500000 2 Signed a contract of lease and ... View the full answer