Blish Corporation was incorporated on January 1, 2021, with the following share capital authorization:

1,000,000 Ordinary Shares of P50 par value, 100,000 shares of P100 par value 10% Preference Share,
100,000 shares of P150 par value 12% Convertible Preference Share and 100,000 share of P100 par, 12%
Redeemable Preference Shares.

During the incorporation ordinary shares were issued resulting to a premium of P2 per share to the
incorporators in exchange for Land and Building with fair values of P5,000,000 and P15,800,000
respectively. In addition, 10,000 ordinary shares were issued for cash at P53 per share and 20,000
ordinary shares were subscribe at P55 per share and by the end of the year 90% of the subscribe shares
were issued to the original subscriber while the remaining 10% were issued through a delinquency sale,
750 shares to original subscriber and 1,250 to the highest bidder paying the account balance amounted
to 60% of the subscription plus 10% interest and delinquency expenses of P13,200. Cost incurred related
to the incorporation and issuance during the year were:

Particulars Amount
Legal Fees for the Incorporation P 50,000
Incorporation Fees 35,000
Issuance cost related to:
Exchange 425,000
Cash 30,000
Subscription 120,000

Information and other transactions were as follows:

 January 3, 2022, sold for P4,056,500 cash, 35,000 10% Preference Share with warrants to
purchase 7,000 ordinary share at P55 until July 3, 2022. Shares at this date were selling at
P120 without the warrants and P65 for Preference and Ordinary share respectively.
 January 5, 2022, issued 25,000 convertible preference share in exchange for the 2-year
P2,000,000 Notes Payable issued at a 12% discount on April 1, 2021 and Equipment with
fair value of P2,262,000. The preference shares are convertible to 2 ordinary shares for 2
year from the date of issuance.
 March 31, 2022, 75% of the warrants were exercised and 60% of the convertible
preference shares were converted.
 April 1, 2022, issued to shareholder of record on this date share rights to purchase one
ordinary share for every 5 rights submitted at P60 on this date ordinary shares are still
selling at P65. On the same date 80% of the rights were exercise while the remaining rights
were expired and the related shares were sold at their fair value of P65 on October 31,
2022.
 August 1, 2022, received from shareholder equipment having a fair value of P250,000
which is carried in the book of shareholder at P150,000. On the same day Blish also
received from shareholder 20,000 ordinary shares as donation, ordinary shares are now
selling at P63 per share, and on August 31, 2022, these shares were sold at P62 per share.
 October 1, 2022, 15,000 ordinary shares were acquired and held as treasury shares for
P940,000. 5,000 of which were reissued at P65 on October 31, 2022 while the remaining
shares were reissued on November 28, 2022 at P60.
 Blish net income for 2021, and 2022 were as P3,750,000, and P8,300,000 respectively.

Reconstruct or prepare the journal entries for 2021 and 2022.

Prepare a partial Statement of Financial Position showing only shareholder equity section for
2021 and 2022.
Assuming there are no more equity transactions and none of the remaining preference were converted
and the net income / (net loss) for succeeding 7 years and total dividends declaration were: 2023 –
P5,250,000; 2024 – P4,500,000; 2025 – (P7,500,000); 2026 – (P5,450,000); 2027 – (P3,500,000); 2028 –
(P2,850,000); 2029 – (P1,500,000); total dividends issued – P15,000,000, and that a recapitalization is
effected using the independent cases:

1) Replacing ordinary shares with stated value of P30.

2) Decreasing the par value to P25 per share
3) Land, Building, and Equipment are revalued to their fair value which are equal to 150%, 200%
and 175% of their carrying value assuming depreciation is computed on straight line basis using
20 years for Building and 10 years for Equipment.

Treasury Share short problems

An analysis of Shareholders' equity of Hahn Corporation as of January 1, 2020, is as follows:

Ordinary Share, par value P20; authorized 100,000 shares;

issued and outstanding 90,000 shares P1,800,000

Share Premium 900,000

Retained earnings 760,000

Total P3,460,000

Hahn uses the cost method of accounting for treasury Share and during 2020 entered into the
following transactions:

Acquired 2,500 shares of its Share for P75,000.

Sold 2,000 treasury shares at P35 per share.

Sold the remaining treasury shares at P20 per share.

Assuming no other equity transactions occurred during 2020, what should Hahn report at
December 31, 2020, as total share premium?

Percy Corporation was organized on January 1, 2020, with an authorization of 1,200,000 shares of
Ordinary Share with a par value of P6 per share. During 2020, the corporation had the following
capital transactions:

January 5 issued 675,000 shares @ P10 per share

July 28 purchased 90,000 shares @ P11 per share

December 31 sold the 90,000 shares held in treasury @ P18 per share

Percy used the cost method to record the purchase and reissuance of the treasury shares. What
is the total amount of share premium as of December 31, 2020?

Sosa Co.'s Shareholders' equity at January 1, 2020 is as follows:

Ordinary Share, P10 par value; authorized 300,000 shares;

Outstanding 225,000 shares P2,250,000

Share Premium 900,000

Retained earnings 2,190,000

Total P5,340,000
 During 2020, Sosa had the following Share transactions:

Acquired 6,000 shares of its Share for P270,000.

Sold 3,600 treasury shares at P50 a share.

Sold the remaining treasury shares at P41 per share.

No other Share transactions occurred during 2020. Assuming Sosa uses the cost method to
record treasury Share transactions, the total amount of all share premium accounts at
December 31, 2020 is

Presented below is the Shareholders' equity section of Oaks Corporation at December 31, 2020:

Ordinary Share, par value P20; authorized 75,000 shares;

issued and outstanding 45,000 shares P 900,000

Share Premium value 250,000

Retained earnings 500,000

P1,650,000

During 2021, the following transactions occurred relating to Shareholders' equity:

3,000 shares were reacquired at P28 per share.

3,000 shares were reacquired at P35 per share.

1,800 shares of treasury Share were sold at P30 per share.

For the year ended December 31, 2021, Oaks reported net income of P450,000. Assuming Oaks
accounts for treasury Share under the cost method, what should it report as total Shareholders'
equity on its December 31, 2021, balance sheet?

On December 1, 2020, Abel Corporation exchanged 20,000 shares of its P10 par value Ordinary Share
held in treasury for a used machine. The treasury shares were acquired by Abel at a cost of P40
per share, and are accounted for under the cost method. On the date of the exchange, the
Ordinary Share had a market value of P55 per share (the shares were originally issued at P30 per
share). As a result of this exchange, Abel's total Shareholders' equity will increase by