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March 20 - The remainingnumberof shares was declareddelinquent Cost of advertisingthe delinquentshareswas P80Q. The amountdue from the highestbidderwas collectedand the shares were accordinglyissued November 3

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March 20 - The remainingnumberof shares was declareddelinquent Cost of advertisingthe delinquentshareswas P80Q. The amountdue from the highestbidderwas collectedand the shares were accordinglyissued November 3 - 55 share warrantswere exercised Computefor the adjustedbalancesof the followingat December31, 2017: 14. Ordinaryshare capital 15. Sharepremium 16. Paidin Capitalfrom TreasuryShares 17. Ordinaryshare warrantsoutstanding 18. Treasury shares PROBLEME. You were engagedby Spice Girls companywhoseshares are publicly tradedto conductan examinationof its 2017 financialstatements You wereinformedby the company'scontrollerthat there were numerousequity transactionsthat took place in 2017. The SHE at 12/31/2016 had the ff balances PreferenceShare P100par value, 6% cumulative 15,000sharesauthorized 9,000 shares issued and outstanding- P900,000 OrdinaryShare capital P1 par, 900,000shares authorized 600,000shares issued and outstanding - 600,000 AdditionalPaid in Capital- 1,200,000 Retainedearnings- 3,198,000 You summarized the ff transactions during 2017 and other information relating to the SHE in your workingpaperas follows . January6 - issued 22,500ordinarysharesin exchangefor land On this date, the shares had a marketprice of P16.50per share while the land had a carryingvalue in the books of the shareholderof P210,000and an assessedvalue for propertytaxes of P245,000 January31 - Sold 1,350P1,00012% bonds due January31, 2022 at 98 with one detachableshare warrantattachedto each bond Interestis payableannuallyon January 31. The fair value of the bonds withoutshare warrantsis 95. Each warrantentitles the holderto buy 10 shares of ordinaryshare capitalat P10 per share February22 - Purchased7,500 of its ordinarysharesto be held as treasuryfor P24 per share February28 - subscriptionsfor 21,000shares of ordinaryshare capital were receivedat P26 per share payable50% down and the balanceby March 15 March 15 - the balancedue on 21,000shares was receivedand share certificateswere correspondinglyissued April30- Declareda dividenddistributablein the form of ABC sharesheld as FVPL to ordinaryshareholders The FVPL had a carryingvalue of P910,000oar value of P700,000 and a fair value of P950,000distributableon May 31

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