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Date Transaction Jan 02 Clement Co. is authorized to issue shares as follows: 100,000 ordinary shares with P1 par value 50,000 convertible shares with P2

Date Transaction
Jan 02

Clement Co. is authorized to issue shares as follows:

100,000 ordinary shares with P1 par value

50,000 convertible shares with P2 par value. Each preference share is convertible into two ordinary share.

03 Incorporators of Clement Co. subscribed 25% of its ordinary shares at par paying 25%, balance will be payable at the end of the month.
04 Issued 5,000 ordinary shares and 5,000 preference shares in exchange for an equipment costing P 35,000 with a fair value of 30,000.
05 Grace subscribed 1,000 ordinary shares for P5 per share paying P2,000, balance will be paid at the end of the month.
20 Issued 10,000 preference shares for P15,000 cash.
31 Received full payment from the incorporator. The corresponding shares were issued.
Feb 5 The board declared Grace delinquent for non-payment of her subscription despite of the notice given.
10

The subscribed shares of Grace were sold in a public auction. Clement incurred P1,000 for this. Bidders are:

Charmaine: 1,000 shares

Bless: 800 shares

Gideon: 750 shares

11 Received payment from the highest bidder. Corresponding shares were issued.
15 Issued 20,000 ordinary shares for P5 per share.
20 Issued 20,000 preference shares for a land costing P50,000. The share is currently selling at P6 per share.
March 15 Reacquired all ordinary shares issued on January 4 at P5 per share.
31 Reissued 1,000 treasury shares for P6 per share.
April 1 5,000 preference shares sold on January 20 was converted into ordinary shares.
20 Reissued 2,000 treasury shares for P4 per share.
Sept. 30 Retired the remaining treasury shares.
Nov. 1 Declared 2 for 1 share split.
Dec. 25 Issued 2,000 ordinary shares for P10 per share and 5,000 preference shares for P15 per share
31 Net Income for the Period amounted to 750,000

Required:

1. Prepare all the necessary journal entry to record the above transaction. Use memorandum method.

2. Determine the ending balance of the following accounts:

a. Ordinary Shares

b. Preference Shares

c. Share Premium-OS

d. Share Premium-PS

e. Accumulated Profits/ Retained Earnings

f. Total Shareholder's Equity

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