The statement of financial position for Cardenas Corporation just prior to quasi-reorganization was shown below:

Cardenas Corporation

Statement of Financial Position

As of July 31, 20x2

AssetsCurrent AssetsP 400,000Land200,000Buildings and Equipment1,700,000Less: Accumulated Depreciation-Buildings and Equipment(600,0000Total AssetsP 1,700,000Liabilities and Shareholders' EquityCurrent LiabilitiesP 200,000Ordinary Share Capital (par P50)1,600,000Ordinary Share Premium320,000Retained Earnings (deficit)(420,000)Total Liabilities and Shareholder's EquityP 1,700,000

On August 15, 20x2, the shareholders approved a reorganization plan with these provisions:

• Gross buildings and equipment are to be adjusted to their current value P 1,400,000; the accumulated depreciation is to reflect 40% depreciation on the revised value.
• The Ordinary Share capital is to be reduced to a par value of P 20 per share.
• The deficit is to be applied to the ordinary share premium ; any excess is to be charged to the ordinary share premium from the reduction in value assigned to the ordinary share capital created by the restatement of the ordinary share capital.

Provide the journal entries to effect the reorganization plan. Select all that applies.

DR Ordinary Share Capital (P 50 par), P 1,600,000

CR Ordinary Share Capital (P 20 par), P 640,000

DR Retained Earnings , P 260,000

DR Ordinary Share Premium (Reduction in Share Par Value), P 360,000

CR Buildings and Equipment P 300,000

DR Retained Earnings P 300,000

DR Accumulated Depreciation-Buildings and Equipment P 40,000

DR Ordinary Share Premium, P 320,000

CR Retained Earnings, P 420,000

CR Ordinary Share Premium (Reduction in Share Par Value), P 960,000

CR Retained Earnings , P 680,000