Issuance of Shares

B. Sorima Corporation began operations on Jan. 1, 2018. The following transactions relating to shareholder's equity occurred in the first two years of the corporation's operations:

2018

Jan. 1 Authorized the issuance of 2 million shares of P5 par value ordinary shares and 100,000 shares of P100 par value, 10% cumulative preference shares.

Jan. 2 Issued 200,000 shares or ordinary shares for P12 cash per share.

Jan. 3 Issued 100,000 shares of ordinary shares in exchange for a building valued at P820,000 and merchandise inventory valued at P380,000.

Jan. 4 Paid P10,000 cash to the corporation's founders for organization activities

Jan. 5 Issued 12,000 shares of preference shares for P110 cash per shares.

2019

June 4 Issued 100,000 shares or ordinary shares for P15 cash per share.

Required:

1. Prepare the journal entries to record these transactions.
2. Prepare the share capital section of the shareholder's equity as at Dec. 31, 2018 and Dec. 31, 2019
3. Make a table showing dividend allocations and dividends per share for 2018 and 2019 assuming the corporation declared the following cash dividends: 2018, P50,000, and 2019, P300,000.
4. Prepare the Jan. 2, 2018 journal entry for the issuance of 200,000 ordinary shares for P12 cash per share assuming:

a. Ordinary shares is no-par without as stated value.

b. Ordinary shares is no-par with a stated value of P10 per share.