Reference no: EM132878591

Question - The Fernandez Corporation was incorporated on September 1, 2021, and was authorized to issue share capital as follows:

200,000 shares of no par ordinary share

5,000 shares of 6% preference share at a par value of P200

The following share capital transactions took place in the months of September and October 2021.

a. On September 14, subscriptions were received for the authorized ordinary shares at P30 per share on the following terms 25% down In cash at the date of subscription, the balance is payable in three equal installments due on October 15, November 15, and December 15.

b. On September 18, all of the preference shares are sold for cash at P220 per share. Transaction costs of P5,000 were incurred and paid.

c. On October 15, the corporation collected the first installment of the subscription in (a).

Required -

(a) Prepare journal entries to record the above transactions?

(b) Prepare shareholders' equity section of the statement of financial position et of October 31, 2021?