f. 1. Grisham Company was organized on January 1, 2021, with the following transactions affecting shareholders' equity: a. The company was authorized to issue share capital as follows: Preference share, P100 par, 30,000 shares Ordinary share, P50 par value, 100,000 shares b. 40,000 ordinary shares were issued for cash at P60 per share. c. 10,000 preference shares were issued for cash at P120 per share. d. 10,00 preference shares were subscribed at par value. 6. P400,000 was received on the above subscription to preference share. 1,000 preference shares were issued in payment of legal fees of P100,000 in connection with organizing the corporation. g. 20,000 ordinary shares were issued for property, plant and equipment which had a fair value of P1,300,000 h. 15,000 ordinary shares were subscribed for at par value. i. Forty percent of the ordinary share subscription was collected. The balance owing on the subscription described in Dn E was collected, and the preference shares were issued. k. Acquired 5,000 shares of ordinary share at P40 per share. These shares are to be held as treasury 1. Appropriated retained earnings to the extent of the cost of the treasury share. m. Net income for the year was P2,000,000 j. Required: 1. Prepare the journal entries for the foregoing transactions. 2. Prepare the shareholders' equity section of the balance sheet of Grisham Company on December 31, 2021