Problem 1

Venus Company revealed the following chronological transactions:

Purchased 80,000 shares, par P10, at P30 per share as long-term investment.

Received a share dividend of one share for every four owned.

Received additional shares due to 3 for 1 share split.

Received cash dividend of P5 per share.

Received share rights to purchase on share at P30 for every three rights held. On this date, the share right has a market value of P3.

Sold 200,000 rights at P7 each.

Exercised the 60,000 rights.

The remaining rights expired.

Sold 100,000 shares at P10 each.

Required:

Prepare necessary journal entries.

Compute the balance of Investment in Shares account