ASSIGNMENT 1. Issuance of Ordinary and Preference Shares

Villarama Corporation was organized on January 1, 2015. It is authorized to issue 20,000

shares of 6%, P50 par value preference shares and 50,000 shares of with par value of

P10 per share. The following stock transactions were completed during the year:

Jan. 10 Issued ordinary shares for cash P35 per share.

Mar 1 Issued 10,000 preference shares for cash at P55 per share.

Apr 1 Issued 2,500 ordinary shares for land. The asking price of the land was P90,000; the fair market value of the land was P85,000.

May 1 Issued 7,500 ordinary shares for cash at P40 per share.

Sep 1 Issued 500 ordinary shares for cash at P60 per share.

Nov 1 Issued 2,000 preference shares for cash at P53 per share.

Required:

1. Journalize the transactions.

2. Post to the shareholders' equity accounts.

3. Prepare the share capital section of the shareholders' equity as at Dec. 31, 2019.