PROBLEM 6 SMDC Corporation was authorized at the beginning of 2017 with 300,000 authorized shares of P100, par value ordinary shares. At December 31, 2017, the shareholders' equity section of SMDC was as follows: Share capital, par value P100 per share; authorized 300,000 shares; issued 30,000 shares P 3,000,000 Share premium 300,000 Retained earnings 450,000 Total shareholders' equity P 3,750,000 On June 15, 2018, SMDC issued 50,000 ordinary shares for P6,000,000. A 5% share dividend was declared on September 30, 2018 and issued on November 10, 2018 to shareholders of record on October 31, 2018. Market value of ordinary share was P110 per share on declaration date. The profit of SMDC for the year ended December 31, 2018 was P475,000. During 2019, SMDC had the following transactions: Mar. 1 SMDC reacquired 3,000 shares of its ordinary shares for P95 per share. May 31 SMDC sold 1,500 treasury shares for P120 per share. Aug. 10 Issued to shareholders one right for each share held to purchase two additional ordinary shares for P125 per share. The rights expire on December 31, 2019. Sep. 15 25,000 rights were exercised when the market value of ordinary share was P130 per share. Oct. 31 40,000 rights were exercised when the market value of the ordinary share was P140 per share. Dec. 10 SMDC declared a cash dividend of P2 per share payable on January 5, 2020 to shareholders of record on December 31, 2019. Dec. 20 SMDC retired 1,000 treasury shares and reverted them to an unissued basis. On this date, the market value of the ordinary share was P150 per share. Dec. 31 Profit for 2019 was P500,000. Required: Based on the above and the result of your audit, determine the following as of December 31, 2019:PROBLEM 7 The following information has been taken from the ledger accounts of F Corp. Total income since incorporation P 317,000 Total cash dividends declared 60,000 Proceeds from sale of donated stock 40,000 Total value of stock dividends distributed 30,000 Gains on treasury stock transactions 18,000 Unamortized discount on bonds payable 32,000 Treasury stock 20,000 Appropriated for plant expansion 70,000 Unpaid cash dividends 24,000