1. compute for the amount of share premium account increase as result of the transaction.
2. prove the necessary journal entry to record the transactions. (use any method)

Problem 1 Aglubat Company issued 1,000 shares with P5 par to Aromin as compensation for 1,000 hours of legal services performed. Aromin usually bills P160 per hour for legal services. On the date of issuance, the share was trading on a public exchange at P140. Required: a. Compute for the amount of share premium account increase as result of the transaction. b. Provide the necessary journal entry to record the above transaction. (Use any method)