You were assigned to audit the shareholders' equity of Beta Corp. for the year ended December 31,

2020. Beta Corp. was incorporated in early 2019 when it was authorized by SEC to issue 100,000

ordinary shares (P50 par) and 50,000 preference shares (P100 par). The following schedule reflects

the company's capital balances as of December 31, 2019:

Ordinary shares, 50,000 shares issued at inception of operations in lieu of a

Land and Building with a total fair market value of P4M (40% attributed to the

Land.)

P2,500,000

Preference shares, 20,000 shares issued in June 30, 2019 at P170 per share.

One preference share can be convertible to three ordinary shares

3,400,000

Retained earnings, which is the company's net income in 2019 2,987,000

Total shareholders' equity ?

Your inquiries and investigation revealed the following transactions which occurred in 2020:

a. On January 5, the company reacquired 10,000 ordinary shares at P900,000 and held them as

treasury shares.

b. On March 31, the company issued 20,000 additional ordinary shares with P2M, 10% face value

bonds for a lump sum consideration amounting to P3,350,000. The bonds which pay interest

every December 31 and shall mature on December 31, 2025 were currently quoted in the

market at 105 (excluding accrued interest) while each ordinary share is selling currently in the

market at P85.

c. On April 5, the company reissued 2,000 of the treasury shares reacquired on January 5 at

P120 per share.

d. On July 20, the company reissued 3,000 of the treasury shares reacquired on January 5 in lieu

of professional services received from lawyers. The fair value of the services received was at

P245,000 which is believed to be reflective of the prevailing fair value of the shares on that

date.

e. On August 1, the company retired and reverted to unissued basis 2,000 of the treasury shares

reacquired on January 5.

f. On October 31, 5,000 of the preference shares were converted to ordinary shares.

g. The company registered an adjusted net income in 2020 at P2,230,000.

Based on the information above, determine the adjusted balance of the following as of Dec. 31, 2020:

1. Ordinary Shares

2. Preference Shares

3. Share premium - Ordinary shares

4. Share premium - Preference shares

5. Share premium - Treasury shares

6. Additional Paid-in Capital

7. Contributed Capital

8. Stockholders' Equity