On January 1, 2013, Nissan Company had an ordinary share capital of 4,000,000 authorized shares with P20 par value, of which 1,000,000 shares were issued and outstanding. The shareholders' equity on January 1, 2013 revealed the following balances: Ordinary share capital 20,000,000 Share premium 6,000,000 Retained earnings 5,000,000 Transactions during the year and other information relating to shareholders' equity accounts were: 1. On January 5, Nissan Company issued at P54 per share, 100,000 preference shares with P50 par value and 9% cumulative. Each preference share is convertible, at the option of the holder, into two ordinary shares. Nissan Company had 400,000 authorized preference shares. 2. On February 1, Nissan Company reacquired 10,000 ordinary shares at P32 per share. 3. On April 30, Nissan Company sold 250,000 ordinary shares at P34 per share. 4. On June 18, Nissan Company declared a cash dividend of P2 per ordinary share, payable on July 12, to shareholders of record on July 1. 5. On November 19, Nissan Company sold 5,000 shares of treasury for P42 per share. 6. On December 15, Nissan Company declared the yearly cash dividend on preference share capital, payable on January 14, 2014 to shareholders of record on December 31, 2013 7. The net income for the year was P3,500,000. 8. Nissan appropriated retained earnings equal to the cost of treasury shares. Required: a. Prepare journal entries to record the transactions. b. Prepare a statement of changes in equity for 2013. c. Present the shareholders' equity on December 31, 2013