McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances: Preference share capital, P20 par Ordinary share capital, P5 par Share premium - preference Share premium - ordinary Retained earnings P 2,000,000 8,000,000 5,000,000 12,000,000 10,000,000 The following transactions occurred in 2021: January 31 March 31 April 30 June 30 August 31 Issued 100,000 preference shares at P25 per share Issued 200,000 ordinary shares, receiving 1,600,000 Issued 50,000 preference shares and 125,000 ordinary shares, receiving P3,600,000. The fair value of each preference share and each ordinary share on this date was P30 and P20, respectively. 10,000 preference share capital were converted into 20,000 ordinary shares. These shares were originally issued at P27 per share. Issued P10,000,000, five-year, 12% convertible bonds at 103. Without the conversion option, the bonds would be sold at par. Each P1,000 bon convertible into 150 ordinary shares. Issued P5,000,000, 10-year, 10% bonds and 50,000 warrants for a total consideration of P5,200,000. The fair value of the bonds on this date was 98. Each warrant allows the holder to purchase 10 ordinary shares at P12 per share. Received a unit of equipment and a set of furniture and fixtures by issuing 20,000 preference shares. The fair values of the equipment and the furniture on this date were P700,000 and P300,000, respectively. McAllister's preference shares have a fair value of P32 on this date A shareholder donated 100,000 ordinary shares, when the shares were trading at P22. The shares were sold by McAllister the next day at P25 per share 40% of the bonds issued on June 30 were converted into shares 30,000 warrants were exercised Net income during the year was P2,000,000 September 30 October 31 November 30 December 31 1. Prepare the necessary journal entries in 2021. 2. Determine the balances of the following as of December 31, 2021: a. Preference share capital b. Ordinary share capital c. Total share premium d. Total shareholders' equity