II. Exercises. 1. The XYC Co. has been authorized to issue 5,000 shares of 10%, Preferred stocks at P50 par value and 50,000 Common Shares at P10 par value. All the shares have been issued and outstanding. At the end of the year the company incurred a deficit of P15,000. Required: Prepare the Stockholders' Equity section of the Company's balance sheet. 2. The following transactions were completed by ABC Co.: Jan. 5 Received authorization to issue the following: 50,000 shares of 10% Preferred at P60 par value; and 100,000 Common shares at P 75 par value. Jan. 15 Received subscriptions for 25,000 shares of Preferred shares at P60 per share. Jan. 15 Received subscriptions from incorporators, 60,000 shares of Common at P8 per share. Accounting 2 - Partnership and Corporation Accounting 114 Jan. 20 Received full payment from subscribers of Preferred shares. Stock certificates were issued. Jan. 20 Received full payment from subscribers of Common shares. Stock Certificates were issued. Jan. 31 Paid 5,000 for organization costs. Required: Record the above transactions, using: 1. memorandum entry method 2. journal entry method