Problem $3$: Issuance of shares, Subscription Defaults and Treorizy baie On January $5,20$x$1,$ Gallardo Corp was organized and authorized to issue $100,000$ ordinary share with P$100$ par value. The following are the transactions relating to shareholders equity during year $20$x$1$:a$.$ Issued $5,000$ shares for P$600,000$ cash. b$.$Issued $10,000$ shares for land with fair value of P$1,200,000.$C$.$Share issuance cost of P$5,000$ was paid.d$.$ Received $20,000$ shares subscription from Mr$.$ A for P$120$ per share.Collected P$1,000,000$ cash from Mr$.$ A as payment for his subscription.f$.$Mr$.$ A defaulted on the remaining balance of subscription and the entity declared the shares as delinquent$8$The entity subsequently offered the delinquent shares for auction. The entity incurred and paid P$20,000$ auction expenses which is chargeable to the highest bidder.h$.$ There are two bidders: Mr$.$ X$,$ who is willing to pay the offer price for P$10,000$ shares and Mr$.$ Z$,$ who is willing to pay the offer price for $9,800$ shares$\mathrm{.}1.$ The entity issues the delinquent shares.Issued $3,000$ shares for equipment with fair value of P$310,000$ with cost ofP$320,000$ and paid share issuance cost of P$1,000.$k$.$The net income for the year amounted to P$1,600,000\mathrm{.}1\mathrm{.}400$ shares were reacquired for P$30,000.$m$.$ The entity reissue the $300$ treasury shares for P$120$ per share.n$.$ The entity retired the remaining $100$ treasury shares.Required: Prepare the journal entries and present the shareholders' equity