Problem no. 1 ABC Corporation has the following transactions throughout the year of 2020: Jan ABC Corporation received its certificate of incorporation from Securities and Exchange Commission. From its submitted Articles of Incorporation, the corporation has a total of authorized share capital of P10,000,000.00 divided into 1,000,000 ordinary shares with par value of P10.00. Out of the total authorized share capital, 30% has been fully paid and issued at P11.00 per share to incorporators. The company incurred P120,000 directly related to the issuance of shares. Feb 1 Mr. Z, an investor, subscribed 20,000 shares at a subscription price of P15.00. ABC has collected 20% of the total subscription price and remaining balance payable within 10 days. 5 ABC issued 140,000 shares at P17.00 per share. ABC issued 40,000 shares in exchange for equipment. The fair value of the shares is P11.00 and the fair value of the equipment is P480,000. 28 9 ABC issued 30,000 shares for payment of legal services. The fair value of the service is cannot be determined reliably. The fair value of the shares is P11.00. Mar Mr. Z, failed to settle the remaining subscription receivable. ABC declared the subscribed shares delinquent. On the same day, ABC held a public auction and incurred an auction expense amounting to P30,000.00. The accrued interest is P2,000.00. The following are the bidders in the public auction with their respective bids: Mr. X Mr. Y 12,000 shares 10,000 shares 11,000 shares Ms. A The total unpaid subscription balance, auction expenses and accrued interest was collected to the highest bidder and the shares were issued accordingly. 30 ABC reacquire 25,000 of its shares previously issued at a cost of P14.00 per share. Jun 15 ABC reissues 12,000 treasury shares at P16.00. 27 ABC reissued 10,000 treasury shares at P12.00. Dec 31 At the end of the year, ABC reported a total net income of P400,000.00 3. Ordinary share capital 4. Share premium - Ordinary 5. Share premium – Treasury 6. Retained earnings 7. Treasury shares 8. Total contributed capital 9. Total legal capital 10. Total shareholders' equity