Problem 1 (Retirement, Conversion and Treasury Shares) The shareholders' equity of Adana Publishing Company shows the following balances: 5% Preference Share Capital, P 50 par value, 20,000 issued and outstanding shares P 1,000,000 Ordinary Share Capital, P 20 stated value 100,000 issued and outstanding shares P 2,000,000 Preference Share Premium 300,000 Ordinary Share Premium 400,000 Retained Eamings 1,250,000 The following transactions occurred: 1. 1,000 preference shares were retired at P 78 per share. 2. Another 800 preference shares were retired at P 62 per share. 3. 2,000 preference shares were converted into ordinary shares with a ratio of 1 PS into 4 shares. 4. 1,500 preference shares were converted into ordinary shares with a ratio of 1 PS into 6 shares. 5. Reacquired 2,000 ordinary shares at P 23 per share. 6. Reissued all the treasury shares at P 21 per share. Requirements 1. Prepare the journal entries for the transactions occurred. 2. Prepare the Shareholders' Equity at year end