Name:________________________________Date:___________________Time:______________

The stockholders equity of Willpower Corporation showed the following data on

December 31, 2018:

12% Preference Share, P30 par, 135,000 shares issued and outstanding P4,050,000
Ordinary Share Capital, P50 par, 180,000 shares issued and outstanding 9,000,000
Share Premium – Preference Share 1,080,000
Share Premium – Ordinary Share 3,240,000
Accumulated Profits (Losses) 1,395,000

The 2019 transactions of the company affecting its stockholders’ equity are summarized
chronologically as follows:

1. Issued 27,000 shares of preference at P40.

2. Issued 94,500 shares of ordinary share at P70.
3. Retired 5,400 shares of preference share at P45.
4. Purchased 13,500 shares of its ordinary share at P80.
5. Split common stock two for one.
6. Reissued 13,500 shares of treasury share – common at P50.
7. Stockholders donated to the company 9,000 shares of ordinary when shares had
a market price of P52. One half of these shares were subsequently issued for P54.
8. Net income for the year was P2,520,000.

Required:

1. Prepare journal entry.

2. Compute the account balance of the following accounts as of December 31, 2018;

1. Preference Share Capital

2. Ordinary Share Capital
3. Total Share Premium
4. Un-appropriated Accumulated Profit (Losses)
5. Totals Stockholders’ Equity