I. Case Analysis: Please read and analyze carefully the case and answer the following questions: 1) which amounts cited below do you think must be
included in the business financial reports? 2) What is your basis for
including the said amounts?
The owner, Robin Rica, invested Php 10,000 and borrowed Php50, 000 to
start his business. He purchased a photocopying machine for P 30,000 and
supplies for Php10, 000.00. He paid two months' rent for Php10, 000.00,
salary for Php 4,000, and business permit for Php2, 000.00. The business
consumed electricity for Php2, 500.00 payable the following moth. During
the first month of business operations, the photocopying service generated
Php10,000.00 revenue.​