(3) ACES Company began its manufacture and sale of stainless steel kitchen accessories on January 1, 1995, with the owner, Christopher Jao, putting in P2,000,000 worth of cash and P500,000 worth of treasury bills. Along with this, Jao issued a P1,000,000 5-year 8% bond with interest payable annually. With this he paid advance rent for two years on the factory, worth P500,000, and he purchased equipment worth P1,500,000, which has an estimated useful life of 10 years and no scrap value. Merchandise inventory worth P3,000,000 were purchased on account with terms 5/10, n/30. The company also purchased supplies worth P500,000 at the beginning of the year. Christopher Jao registered the company with the Securities and Exchange Commission and secured the necessary licenses at a cost of P40,000, which the company will amortize over a period of 20 years. Production orders started coming in and at the year, cash receipts totaled P4,524,000, while credit sales totaled P1,250,000. It is estimated that 4% of outstanding credit sales would not be recovered. Supplies at the end of the year were worth P150,000 and the total cost of goods sold corresponding to sales was P2,584,000. Wages paid throughout the year totaled P1,258,000. By the end of the year, the company had also sold the treasury bills for P650,000. All merchandise inventory were paid for in cash. Use straight-line depreciation, and allowance method of recording bad debts. Income tax is 35% payable annually. Required: (a) Journalize and post adjusting entries. (b) Prepare the trial balance as of Dec. 31, 1995. (c) Journalize and post closing entries. (d) Prepare the balance sheet as of Dec. 31, 1995. (e) Prepare the income statement for the year