Required:

1. Ordinary share capital, December 31, 20x3

2. Share premium - ordinary shared, December 31, 20x3

3. Retained earnings, December 31, 20x3

4. Treasury shares balance, December 31, 20x3

AUDIT OF SHAREHOLDERS' EQUITY CASE 3: YAMI, INC. During May 20x1, Yami, Inc. issued 90,000 of its P10 par value ordinary shares for P1,080,000. Net income through December 31, 20x1 was P102,500. On July 3, 20x2, Yami issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholders of record on October 23, 20x2. The market value if the ordinary shares was P11 per share on the declaration date. Yami's net income for the year ended December 31 ,20x2 was P220,000. During 20x3, Yami had the following transactions: 1. In February, Yami reacquired 9,000 of its ordinary shares for P9 per share. Yami uses the cost method to account for treasury shares. 2. In June, Yami sold 4,500 of its treasury shares for P13 per share. 3. In September, each shareholder was issued for each share held one (1) right to purchase two (2) additional ordinary shares for P13 per share. The rights expire on December 31, 20x3. 4. In October, 75,000 rights issues were exercised when the market value of the ordinary share was P14 per share. 5. In November, 120,000 rights were exercised when the market value of the ordinary share was P15 per share. 6. On December 10, Yami declared its first cash dividend to shareholders of P0.25 per share, payable, on January 10, 20x4, to shareholders of record on December 31, 20x3. 7. On December 22, in accordance with the applicable law, Yami formally retired 3,000 of its treasury shares and had them revert to an unissued basis. The market value of the ordinary share was P16 per share on this date. 8. Net income for 20x3 was P270,000