Chapter 32 - Shareholders' Equity Transactions in 2021: a) On January 15, the company reissued its 1,500 treasury shares at P20 per share b) On March 1, the company split the ordinary shares 2 for 1 share. c) On April 1, Luke Company declared several equipment as property dividends payable on August 15, 2021. The carrying amount of the equipment is P648,000. Data relating to the fair values of the equipment are as follows: Fair values (assume that the costs Date to distribute are immaterial) April 1, 2021 P700,000 August 15, 2021 P650,000 d) On September 1, the company issued 4,000 shares of P50 par preference shares with detachable warrants. The package sells for P150. The warrants enable the holder to purchase 2,000 ordinary shares at P15 per share. Immediately after the issuance of the share, the warrants are selling at P10 per share and the market value of the preference without the warrants is P90. e) On October 1, 80% of the warrants are exercised. The remaining warrants were not exercised. f) On November 2, 2,000 ordinary shares were retired at P20 per share. These ordinary shares were originally issued previous year at P15 per share. g) On December 15, the company declared a P4 per share cash dividends on the ordinary shares. h) Adjusted net income for 2021 was P2,400,000. Questions: Based on the above data, determine the following as of December 31, 2021: 1. Preference shares a. P260,000 C. P200,000 b. P540,000 d. Zero 2. Ordinary shares a. P836,000 C. P846,000 b. P847,000 d. P838,000 3. Total share premium a. P876,000 c. P844,500 b. P839,500 d. P831,500 4. Retained earnings - unappropriated a. P16,047,100 b. P16,062,100 C. P16,074,600 d. P16,152,500 5. Total shareholders' equity a. P17,929,600 b. P17,929,200 c. P18,010,000 d. P16,181,000PROBLEM 32-29 Comprehensive Problem Luke Corporation had the following shareholders' equity account balances at December 31, 2020: Ordinary shares (P10 par value; 200,000 shares authorized, 84,000 shares issued) P 840,000 Share premium 420,000 Retained earnings 1000 0108 15,000,000 Total P 16,260,000 Less: Treasury ordinary shares (4,000 shares) 44,000 P 16,216,000 Total Shareholders' Equity 1406