Reference no: EM133014248

Problem - Lead Company provided the following data for the ?rst year of operations:

a. Sold 30,000 preference shares, 12%, P100 par at P140.

b. Sold 100,000 ordinary shares of P50, at P55.

c. Purchased and retired 10,000 preference shares at P120.

d. Purchased 15,000 ordinary shares at P52 to be held as treasury.

e. Sold 10,000 treasury shares at P60.

f. Shareholders donated to the entity 20,000 ordinary shares when shares had a market price of P60. One half of these shares were sold for P65.

g. Net income for the year was P3,000,000.

h. Appropriate retained earnings equal to the remaining cost of treasury shares.

Required -

1. Prepare journal entries to record the transactions.

2. Present the shareholders equity.