Accounting Philippines

Retained Earnings Transaction

Please give journal entry needed.

Problem 20: Corporate Transaction The stockholders' equity section of Josh Corp. on January 2, 2020 is presented below: 10% Convertible Preference Share Capital, P100 par 500,000 shares Ordinary Share Capital, P20 par, 12,000,000 shares authorized 200,000 shares issued Share Premium - Preference Share Premium - Ordinary Retained Earnings 50,000,000 4,000,000 5,000,000 1,000,000 40,000,000 Each preference share is convertible into five ordinary shares. The following transactions during 2020 are as follows: a. 100,000 preference shares are converted. b. Reacquired 50,000 ordinary shares for P18 per share. c. Declared regular dividends on preference shares and a cash dividend of P5 per share on ordinary shares. d. Issued 10,000 ordinary shares in exchange for equipment with a market value of P300,000. e. Reissued 15,000 treasury shares for P300,000. f. The ordinary shares were split 5 for 1. g. Issued 10,000 preference share in exchange for furniture with fair value of P1,200,000. h.Reported net income of P5,000,000. Required: Prepare the necessary journal entries