1. compute for the amount of share capital to be reported. (note: this is the unissued share capital account credited when journal entry method is used)
2. compute for the amount of share premium to be reported.

Problem 2 At the beginning of the current year, Arbollente Company was organized with authorized capital of 100,000 shares of P200 par value. January 10 Issued 25,000 shares at P220 a share. March 25 Issued 1,000 shares for legal services when the fair value was P240 a share. September 30Issued 5,000 shares for a tract of land when the fair value was P260 a share. Required: a. Compute for the amount of share capital to be reported. (note: this is the unissued share capital account credited when journal entry method is used) b. Compute for the amount of share premium to be reported