Distian General Instruction: a. Read each instruction carefully. b. Write your answers clearly. c. Avoid erasures. 2021.11.24 09:57 I. PROBLEM: (Applying) Solve for the following transactions were incurred by ASC Company in 2014. January 2014 a. Incorporators infused P12.5 million cash in a newly organized corporation, ASC Company, a trading company. The par value of the shares is P1.00. b. ASC Company bought land and building for P6 million cash. The value of the building which has a remaining useful life of 20 years is P4 million. A full-year depreciation for the building can be recognized in 2014 c. ASC Company bought fixtures to be used in the operation of the business for P600 000. These are depreciable over 10 years. d. ASC Company bought office equipment for P500 000. These are depreciated over five years. e. ASC Company bought two transportation vehicles for P1 million. These are depreciated over five years. Transactions of ASC for 2014: a. Bought merchandise worth P18 million, P1.5 million of which remained unpaid as of December 31, 2014 b. Sold merchandise for P20 million. The average cost of the merchandise sold is 75% of the sales. Twenty percent of the sales remained uncollected as of December 31, 2014. c. Paid salaries of employees amounting to P1.25 million. d. Total utilities incurred for the year is P280 000, P250 000 of which was paid during the year. e. Other operating expenses which were paid in cash amounted to P350 000. f. Tax rate is 30%. Seventy percent of the tax due for the year was paid in 2014. The balance was paid in the first quarter of 2015. Requirements: (10 pts. each) 1. Prepare the 2014 Statement of Comprehensive Income of ASC Company 2. Prepare the Statement of Financial Position of ASC Company as of December 31, 2014 3. Prepare the Statement of Cashflows