Problem 1: Retained Earnings (5 points) J Co. has a P2,000,000 credit balance of retained earnings. The following transactions are taken from J. Co during the year. Net loss, P400,000 Purchase of treasury shares at cost P200,000 Declaration of dividends, P500,000 Required: Compute the adjusted retained earnings at the end of the period. Problem 2: Shareholder's Equity (15 points) Transaction of MY Company during 2022, the first year of operations, that affected its shareholder's equity were as follows: - Sold 40,000 6\% preference shares, P100 par at P140 per share. - Sold 60,000 ordinary shares, P75 par at P90 per share. - Re-purchased 20,000 preference shares at P130 per share. - Purchased 10,000 ordinary shares at P80 per share to be held as treasury. - Sold 8,000 treasury shares at P95. - Net income for 2022 was P6,000,000. - Dividends declared amounted to P500,000. Required: Journal Entries Problem 3: Cash Flow Statement (17 points) The Comparative balance sheet of James Inc. for December 312010 and 2011 is as follows: LIABILITIES AND SHAREHOLDER'S EQUITY Additional information: a. Net income, P96,250 b. Depreciation expense reported on the net income statement: buildings, P10,200; machinery and equipment P27,000. c. Land costing 20,000 was sold for P20,000. d. Patent amortization reported on income statement, P5,000. e. A mortgage note was issued for P60,000. f. A building costing P100,000 was constructed. g. 2.500 ordinary shares were issued at P30 in exchange for the bonds payable. h. Cash dividends declared, P60,000. Required: Prepare a cash flow statement