PROBLEM Reca, Inc. is a public enterprise whose shares are traded in the over-the-counter market. At December 31, 2010, Reca had 6,000,000 authorized shares of P10 par value ordinary shares , of which 2,000,000 shares were issued and outstanding . The shareholders ' equity accounts at December 31 , 2010 had the following balances Ordinary shares P20,000,000 Additional paid -in capital 7,500,000 Retained earnings 6,470,000 Transactions during 2-11 and other information relating to the shareholders' equity accounts were as follows : 1) On January 5, 2011, Reca issued at P54 per share, 100,000 shares of P50 par value, 9% cumulative convertible preference shares. Each share of preference is convertible, at the option of the holder, into two ordinary shares . Reca had 600,000 authorized preference shares . 2) On February 1, 2011, Reca reacquired 20,000 of its ordinary shares for P16 per share . Reca uses the cost method to account for treasury shares 3) On April 30, 2011, Reca sold 500,000 shares (previously unissued) of P10 par value ordinary shares to the public at P17 per share 4) On June 18, 2011, Reca declared a cash dividend of P1 per ordinary share, payable on July 12 , 2011 , to shareholders of record on July 1, 2011 . 5) On November 10, 2011 , Reca sold 10,000 treasury shares for P21 per share 6) On December 14, 2011, Reca declared the yearly cash dividend on preference shares, payable on January 14, 2012, to shareholders of record on December 31 , 2011 . 7) On January 20, 2012, before the books were closed for 2011, Reca became aware that the ending inventories at December 31, 2010, were understated by P300,000 (the after-tax effect on 2011 net income was P210,000). The appropriate correcting entry was recorded the same day. 8) After correcting the beginning inventory, the net income for 2011 was P4,500,000 Questions 1. The retained earnings as restated as of January 1, 2011 is 2. The retained earnings balance as of December 31 , 2011 is 3. The additional paid-in capital from preference shares as of December 31, 2011 is 4. The additional paid-in capital from ordinary shares as of December 31, 2011 is 5. Total shareholders' equity as of December 31, 2011 is