The shareholders' equity section of Sophomore Company on Decembers 31, 2019 follows:

12% Preference share, 20,000 shares, P10 par value 200,000

14% Preference share, 10,000 shares, P30 par value 300,000

Ordinary share capital, P2 par value, 1,000,000 shares authorized,

180,000 shares issued, 177,580 shares outstanding 360,000

Share premium- OS (issuance) 3,640,000

Share premium - treasury shares - OS 45,000

Retained earnings 649,378

Treasury shares-OS at cost (145,200)

The 12% preference share is cumulative and participating. The 14% preference share is noncumulative and participating. Dividends are in arrears for 3 years.

On 2020, the following transactions took place:

Jan 01 Sophomore granted 1,000 share appreciation rights (SARs) to employees with the condition that the employees remain in service for the next three years. The following information related to the SARs granted is available:

Date	Number of SARs expected to vest	Fair value of each SAR
Jan. 1. 2020	1,000	40
Dec. 31, 2020	900	48
Dec. 31, 2021	800	60
Dec. 31, 2022	750	64

All the 750 SARs vested at the end of three years were exercised on December 31, 2022.

Feb 1 Sophomore reissued 1,300 treasury shares for P40 per share. All the treasury shares on hand were purchased in one block in 2018.

Feb 1 Sold 180, P1,000, 9% bonds due February 1, 2030 at 103 with detachable share warrant attached to each bond. Interest is payable annually on February 1. The fair market value of the bonds without the share warrants is P95. The detachable warrants have fair value of P50 each and expire on February 1, 2021. Each warrant entitles the holder to purchase 10 ordinary shares at P40 per share.

Mar 1 2,800 ordinary shares were subscribed for at P44 per share. 40% of the subscription was collected.

Mar 30 The balance due on 2,400 shares was received and those shares were issued.

Nov 1 There were 110 share warrants detached from the bonds and exercised when the market price is P60 per share.

Sophomore net income for 2020 before deducting the salaries incurred related to the SARs granted is P1,500,000. The average market price of ordinary shares during the year is P60 per share.

Required: Based on the preceding information (ignore income tax), prepare the following:

1. Journal entries to record the transaction. Present supporting computations after the related journal entry before presenting the next journal entry. Follow proper recording otherwise your answer will be marked wrong.
2. Determine the correct balances of each of the following as at December 31, 2020 by presenting the accounts' T-accounts. All entries shall be properly labeled otherwise it will be marked wrong:
   1. Ordinary shares
   2. Share premium-OS (issuance)
   3. Share premium-treasury shares-OS
   4. Retained earnings unappropriated
   5. Treasury shares
3. Compute for the Book Value per Share of all the shares of Sophomore as at December 31, 2020. Show computation in good form.
4. Compute for the Basic Earnings per Share and Diluted Earnings per Share of Sophomore at December 31, 2020.
5. Prepare Statement of Changes in Shareholders' Equity at yearend.