Brook Company was organized at the beginning of the current year. The entity provided the following transactions affecting shareholders' equity.

1. ) The entity was authorized to issue share capital as follows: Preference share capital. Php 100 par. 30,000 shares Ordinary share capital. Php 10 par value, 100,000 shares
2. ) 40,000 ordinary shares were issued for cash at P60 per share.
3. ) 10,000 preference shares were issued at P120 for cash.
4. ) 10,000 preference shares were subscribed at par value.
5. ) Php 400,000 was received on the above subscription to preference shares.
6. ) 1,000 preference shares were issued in payment of legal fees of Php 100,000 in connection with organizing the corporation.
7. ) 20,000 ordinary shares were issued for property, plant, and equipment which had a fair value of Php 1,300,000.
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.

Required:

a.) Prepare journal entries to record the transactions using the memorandum method.

b.) Present the shareholders' equity in the statement of financial position.