CFAS Company was organized in 2022 with authorized capitalization of 500,000 ordinary shares with P150 par value per share and 100,000 preference shares with P100 par value per share. The following transactions during the year.
January 4, 2022, the company issued 100,000 ordinary shares and 50,000 preference shares for a total
consideration of P22,000,000. At that time, the fair value of ordinary shares were P200 per share while
the preference shares were P150 per share.
On June 25, 2022, the entity issued 2,000 ordinary shares in exchange for legal services. The lawyer
usually bills P400,000 for this service. On the same date, the ordinary shares were selling for P220 per
share.
"On December 30, 2022, the entity issued 10,000 preference shares in exchange for a tract of land. The
land has no reasonable fair value. The preference shares were selling for P180 per share on this date.
1. What amount should be reported as ordinary share capital at the end of the year?
2. What amount should be reported as preference share capital at the end of the year?
3 What amount should be reported as share premium at the end of the year?