Corporation

Required:

SECTION: ' PROFESSOR: . Problem #23 T. Galang Corporation was incorporated on Jan- 1. 2019: the articles Of incgrioratlo: ' authorized the issuance of 50,000 shares of P5 par ordinary shares and 20,00 5 ares 0 P100 par, 8% preference shares. The following events occurred during'2019. a. issued for cash 10,000 shares of ordinary shares at P25 per share and 1.000 shares of preference shares at P110 per share on Jan. 15, 2019. ' b. Acquired a book collection on April 1 in exchange for 2,000 shares of ordinary shares. At the time of the exchange, the ordinary shares was selling on the local stock exchange for P30 per share. ' c. Repurchased 500 shares of ordinary shares'on May 1 at P20 per share. The corporation is holding the stock to be used for an employee bonus plan. d. Declared a cash dividend of P1 per share to ordinary shareholders and an 8% dividend to preference shareholders on July 1. The preference shares is noncumulative, nonparticipating. The dividend will be distributed on Aug.'1. ' e. Distributed the cash dividend on Aug. 1. f. Declared and distributed to preference shareholders a 10% share dividend on Sept. 1. At the time of the dividend declaration, preference shares was valued at P130 per share. , g. On Dec. 31, calculated the. annual profit for the year to be P200,000. T. Galang wants to transfer the profit from the Income Summary account to the Retained Earnings account. Required: 1. Journalize the transactions. ' - 2. Prepare theshareholders equity section of T. Galang Corporation's statement 0f nancral posmon as at Dec. 31, 2019. 3. Determine the book value per share of the ordinary shares Assu he preference shares can be redeemed at par. me that t