6. 1.000 preference shares were issued in payment of legal fees of P100.000 in connection with organizing the corporation. 7. 20.000 ordinary shares were issued for property, plant and equipment which had a fair value of P1.300.000. 8. 15.000 ordinary shares were subscribed for at par. 9. Forty percent of the ordinary share capital subscription was collected. 10. The balance owing on the subscription described in 4 and 5 was collected. and the preference shares were issued. 11. Acquired 5.000 ordinary share at P40 per share. These shares are to be held as treasury. 12. Appropriated retained eamings to the extent of the cost of the treasury shares. 13. Closed net income of P2.000.000 to retained earnings. Required: a. Prepare journal entries to record the transactions using the memorandum method. b. Present the shareholder's equity in the statement of nancial position