Reference no: EM132762009

Question - The Shareholders' Equity of ADAM CO. on January 1, 2020 appears as follows:

12% Preference Share, P200 par, 20,000 shares authorized, 7,000 shares issued and outstanding 1,400,000

Share Premium - Preference 175,000

Ordinary Shares, P100 par, 180,000 shares authorized, 35,000 shares issued and outstanding 3,500,000

Share Premium - Ordinary 1,750,000

Retained Earnings 4,500,000

During 2020, the following transactions occurred:

Jan. 2: Issued 20,000 ordinary shares for P180 per share

Feb. 7: Purchase 6,000 ordinary shares for the treasury at P200 per share

Feb. 15: Shareholders donated 5,000 entity's own ordinary shares to the corporation

May 14: Sold half of the treasury shares acquired last February 7 for P220 per share.

June 27: Sold the donated shares at P220 per share

Aug. 28: Issued 4,000 preference shares to acquire special equipment with a fair value of P1,440,000

Sept. 24: Received Subscription to 18,000 ordinary shares at P250 per share

Sept. 25: Received Cash Payment for each subscriber for 40% of the ordinary share subscription price

Nov. 24: Received full payment of the 10,000 shares on Sept. 24 and 25

Dec. 31: Close Net income of P1,000,000 from the income summary account to retained earnings.

Required - How much is the total share premium on December 31, 2020?