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

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

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

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

Ordinary shares, 50,000 shares issued during the company's

incorporation at P150 per share.

P7,500,000

Preference shares, 20,000 shares issued in June 30, 2019 in exchange of

a building with a fair market value of P1,200,000.

1,200,000

Retained earnings, which is the company's net income in 2019 5,540,000

Total shareholders' equity P14,240,000

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

a. On January 5, the company issued 10,000 ordinary shares to employees as compensation. The

shares are currently selling on this date at P165 per share.

b. On March 10, the company issued 15,000 ordinary shares and 20,000 preference shares for a

total lump sum of P4,000,000. On this date, ordinary shares are quoted in the market at P150

per share while preference shares are quoted at P75 per share.

c. On May 1, the company issued 13,000 ordinary shares with a 3 year- P3,000,000, 12% face

value bonds for a total consideration of P5,000,000. The bonds which pay semi-annual

interest every January 1 and July 1, are currently quoted at 95 (excluding accrued interest)

while the ordinary shares are quoted in the market at P155 per share.

d. On August 1, 15,000 preference shares were subscribed by several subscribers at P80 per

share. 25% of the subscriptions were collected up front with the balance to be paid after 3

months.

e. On October 31, receivables for the 10,000 shares subscribed on August 1 were fully collected,

thus the corresponding shares were issued. The subscribers of the remaining shares defaulted,

as a result, the company offered the remaining shares in an auction. The company advanced

P15,000 in auction related expenses.

f. On November 25, the company selected the highest bidder, thus the amount due was

collected. The remaining shares were issued.

g. An outstanding loans payable amounting to P1,000,0000, with an accrued interest at

P120,000 was settled by issuing 8,000 ordinary shares. Settlement of the liability by issuance

of shares is not according to the normal or original credit terms. The creditor agreed to the

concession as part of a debt restructuring agreement with the company. Ordinary shares were

currently selling on this date at P160 per share.

h. The company registered an adjusted net income in 2020 at P4,530,000.

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

6. Ordinary Shares

7. Preference Shares

8. Share premium in excess of par - Ordinary Shares

9. Share premium in excess of par - Preference Shares

10. Stockholders' Equity