7 On January 1, 2003, the shareholders' equity of Bantaya Company's balance sheet revealed the following information: PS Convertible Preference Share (P40 par value; 50,000 shares authorized, 20,000 shares issued and outstanding) Ordinary share (PS stated value; 200,000 shares authorized, 120,000 shares issued and outstanding) Paid-in capital in excess of par Retained earnings Total shareholders' equity In addition, the following information is known: 3. b. d. c. 800,000 600,000 3,000,000 4,500,000 8,900,000 On February 2, 2003, 15,000 ordinary shares were acquired by the company for P33 per share. On September 30, 2003, 5,000 preference shares were converted to ordinary shares. One share of preference share is convertible into one share of ordinary share. At the time of conversion, the ordinary share had a market value of P42 per share. On December 21, 2003, the company received a share subscription of 10,000 ordinary shares at a subscription price of P33 per share. The subscription contract required a cash down payment equal to 60% of the subscription price, with the balance due on February 1, 2004. On February 1, 2004, 8,500 ordinary shares were issued according to the subscription contract. Because of default by a subscriber, 1,500 shares were not issued. The subscription contract requires the subscriber to forfeit all cash advance. On April 15, 2004, 10,000 shares held in treasury were reissued at P50 per shares. On May 16, 2004, a special dividend of preference share was distributed to ordinary shareholders. One hundred shares of ordinary share entitled a shareholder to one share of preference share. The market price of preference share was P40 per share at that time. Net Income for 2003 was P660,000 and for 2004, 890,000. 1. The total preference share at December 31, 2003 Is: Questions a. P 600,000 b. P 625,000 c. P 651,400 d. P667,500 c. P 651,400 d. P 667,500 2. The total ordinary share at December 31, 2003 Is: a. P 600,000 b. P 625,000 3. The total additional-paid in capital at December 31, 2003 Is: a. P 3,637,300 b. P 3,625,000 c. P 3,612,700 4. The total retained earnings at December 31, 2003 Is: d. P 3,455,000 a. P 4,706,887.50 b. P 5,160,000.00 . P 5,491,925.00 d. P 5,596,887.50 5. The Treasury share at December 31, 2003 Is