Reference no: EM133146966

Question - On January 1, 2018, Pulto Company is authorized to issue 60,000 ordinary shares at a par value of P10. Accounting period the company ends on December 31 each year. The following transactions occurred during 2018: January 17 Issued 20,000 shares at P20 per share for cash. Incurred P1,200 for share issuance cost. January 31 Issued 2,500 shares to attorneys for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the services was P85,000. April 18 Investor A subscribed 5,000 ordinary shares for P15. August 26 50% of all outstanding subscribed shares were paid. Sept. 30 Issued 300 shares, valued objectively at P15,000, to the employees instead of paying them cash wages. Nov. 12 Issued 32,500 shares in exchanged for building valued at P3,000,000 and land valued at P4,000,000. The building was originally acquired by the investor for P2,5000,000 and has P1,000,000 of accumulated depreciation; the land was originally acquired for P1,500,000. The shares were selling at P18. Dec. 31 The company earned a net income of P4,320,000 for the year.

Required -

a. Prepare the necessary journal entries for 2018.

b. What is the ordinary share capital balance on December 31, 2018?

c. What amount of share premium to be reported on statement of financial position at December 31, 2018?

d. What is the total balance of shareholders' equity as of December 31, 2018?