What is the balance of share premium immediately

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Question - Roberta Company reported the following on January 1, 2021:

Ordinary share capital, P100 par; 200,000 shares authorized; 50,000 shares issued and outstanding P5,000,000

Share premium P1,000,000

Retained earnings P3,000,000

On July 15, 2021, the entity issued rights to shareholders, permitting the holders to acquire until the end of the year, one share at P130 with every five rights submitted. Shares were selling for P150 at this time.

All rights were exercised as of December 31, 2021. Net income for the year was P3,000,000.

Required -

Q1. What is the balance of share premium immediately after the issuance of stock rights?

Q2. What amount is reported as total shareholders' equity as of December 31, 2021?

Reference no: EM133104445

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