A. On December 31, 2012, the following are selected accounts found in the ledger of A CARE MEDICAL Corporation:

Land P40,000

Notes Receivable. P40,000

Merchandise Inventory. P160,000

Ordinary Share Capital

(no par value, stated valued

established at P100 per share,

50,000 shares authorized) P1,600,000

Retained Earnings

(P600,000 restricted for

treasury shares) P4,000,000

Subscription Receivable-

Ordinary shares. P1,1000,000

Preference Share Capital,

P200,000 Par Value

(authorized,

50,000 shares) P3,000,000

Subscribed Share Capital,

Ordinary. P1,200,000

Organization Costs. P150,000

Share Premium, Ordinary. P500,000

Building. P13,000,000

Share Premium, Preference.P1,300,000

Treasury Shares, Ordinary

(5,000 at cost) P600,000

Direction: Select the proper items and prepare the shareholder's equity section as of Dec. 31.

B. Compute for each of the following:

1. Legal capital for each class of stock:

Preferred Ordinary

___________________________________________

___________________________________________

2. Total amount of paid in capital

Preferred. Ordinary

________________________________________

________________________________________

3. Ordinary shares outstanding

________________________________________

4. Ordinary shares issued

_________________________________________

5. Average price received for preference shares issued

_________________________________________

6. Amount available for dividends

__________________________________________

C. Given the following additional transactions, prepare journal entries:

1. 10,000 preferred shares at P250 with a 25% down payment.

2. 5,000 ordinary shares at P150 with a 50% down payment.

3. Half of the subscription balance was collected for the referred shares.

4. Ordinary shares were collected in full.