Numbers Co., organized on January 1, 2018, was authorized to issue share capital as follows: 20,000 shares of 10% preference share capital, P100 par; 50,000 shares of ordinary share capital, P50 par. During the year, the following transactions were completed:

a. Received subscription for 10,000 shares at P125 and 20,000 ordinary shares at P60. Both subscriptions were payable 50% upon subscription; the balance is due within 30 days.

b. Received the final payment on subscription in (a). Issued shares of stock to the subscribers.

c. Reacquired 2,500 ordinary shares at P55.

d. The holders of preference shares converted 3,000 of their shares into ordinary shares on a share-for-share basis.

e. Reissued 1,500 treasury shares at P62.

f. Received 2,000 ordinary shares as donation from a major stockholder.

g. Sold the 2,000 shares received as donation at P54 per share.

h. Reissued remaining treasury shares at P60.

i. Reported profit of P750,000.

j. Declared the regular cash dividend on preference share capital and a P1.00 cash dividend on ordinary share capital.

Required:

a. Give the journal entries to record the preceding transactions. (Disregard appropriation of retained earnings)

b. Prepare the Shareholders equity section of the statement of financial position as of December 31,2018.