PROBLEMS PROBLEM 1: FOR CLASSROOM DISCUSSION Entity A, a consulting firm, started operations on February 1, 20x1. The following were the transactions during the month: Feb. 1 The sole proprietor of Entity A invested P200,000 cash and new equipment worth P100,000 to the business. 12 Entity A rendered services worth P70,000 on account. 17 Entity A rendered services worth P20,000 on cash basis. 23 Entity A collected accounts receivable of P12,000. 27 The sole proprietor of Entity A withdrew P4,000 cash from the business 28 Entity A paid salaries expense of P10,000 supplies expense of P3,000 and rent expense of P18,000 for the month of February 20x1. D