Problem 1.

On April 1, 2017, Buenaflor Corp., a newly formed corporation, had the following shares issued and outstanding:

Ordinary Shares, no-par, P20 stated value, 20,000 shares originally issued for P60 per share.

Preference Shares, P20 par value, 6,000 shares originally issued for P100 per share.

Required:

Buenaflor's April 1, 2017 statement of shareholder's equity should report

1. Ordinary Shares ______
2. Preference Share _______
3. Share Premium _________

Problem 2.

Sorra Corporation's records included the following shareholders' equity accounts:

Preference Shares, par value P300, authorized 20,000 shares P5,100,000

Share Premium- Preference 300,000

Ordinary Shares, no-par, P100 stated value, 100,000 shares authorized 6,000,000

Required: In the statement of shareholders' equity, the number of issued and outstanding shares of each class of stock is

1. Ordinary Shares _________
2. Preference Shares_________

Problem 3.

In 2017, Chavez Corp. issued 5,000 shares of P20 par value ordinary shares for P200 per share. In 2019, Chavez reacquired 2,000 of its shares at P300 per share from the estate of one of its deceased officers and immediately cancelled these 2,000 shares. Chavez uses the cost method in accounting for its treasury stock transactions.

Required: In connection with the retirement of these 2,000 shares, Chavez should debit

1. Share premium_______
2. Retained Earnings_________