please show COMPLETE SOLUTION.

problem 1 & problem 2

On January 1, 2019, Kenneth's total assets amounted to P8, 200,000; while total liabilities were P2, 600,000. Total retained earnings was P1, 000,000. Included in the shareholders' equity as of this date was 10,000, P10 par callable preference shares which were originally issued at P15 per share. During 2019, these callable preference shares were bought back by Kenneth at P18 per share. Total assets at the end of the year increased by P2, 500,000. P1, 600,000 of the unpaid liabilities at the beginning of the year were paid during the year. Total operating expenses amounted to P3, 000,000; 25% of such amount is not yet paid as of the end of the year. a. Determine the decrease in Kenneth's retained earnings as a result of the redemption of the callable preference shares. b. Determine Kenneth's net income during 2019. At the beginning of 2018, the shareholders' equity of Alice Co. shows the following accounts and balances: 8% Preference share capital, P50 par P4,000,000 Ordinary share capital, P20 par 8,000,000 Share premium - preference 2,000,000 Share premium-ordinary 3,000,000 Share premium - treasury 1,000,000 Retained earnings 9,000,000 The preference shares are participating. The following transactions occurred in 2018: March 12 Declared enough cash dividends such that each preference share would receive P6. These were distributed on April 12 September 14 Reacquired 20,000 ordinary shares at P30 per share October 1 Declared 10% share dividends on all outstanding shares. The fair values of each preference and ordinary share on this date were P62 and P32, respectively. These dividends were distributed on October 30 December 31 Net income during the year was P8,000,000 The following transactions occurred in 2019: March 12 Implemented a 2-for-one share split on all of its ordinary shares September 14 Reissued all of the treasury shares at P13 per share October 1 Declared property dividends in the form of inventory on all of its outstanding shares. One unit will be given for every 100 shares held. The cost of each unit of inventory was P800, but had a fair value of P1, 200 per unit on this date. These dividends were distributed on November 15, when the fair value of each unit was P1,500 December 31 Net income during the year was P6,000,000 a. Determine Alice's shareholders' equity as of December 31, 2018. b. Determine Alice's shareholders' equity as of December 31, 2019