1.ABC Co. issued 6,000 shares of its P10 par ordinary shares as compensation for 1,000 hours of legal services performed by Atty. Go who usually bills P500 per hour for legal services. On the date of issuance, the shares were selling at a public trading at P150 per share.

The issuance of ordinary shares will increase share premium of ABC Co. by what amount?

A. P60,000

B. P440,000

C.P900,000

D. P3,000,000

E. answer not given

2.Earth Co. provided these data on December 31, 2019:

Preference share capital, authorized P100 par P10,000,000 Unissued preference share capital 3,600,000 Ordinary share capital, authorized P20 par 4,000,000 Unissued Ordinary share capital, 2,000,000 Subscribed preference share capital 600,000 Subscribed Ordinary share capital, 440,000 Subscription receivable, preference shares 380,000 Subscription receivable, Ordinary shares 360,000Share capital P 6,000,000 Subscribed share capital 3,000,000 Subscription receivable 1,500,000 Share premium 1,200,000 Cumulative translation adjustment - debit 550,000 Accumulated profits 1,000,000 Treasury shares, at cost 800,000