Problem 3 (Share Split and Recapitalization) On August 4, the capital accounts of Carter Inc. are as follows: P 1,000,000 Ordinary Share Capital, P 25 par, 40,000 shares Ordinary Share Premium 200,000 a. Instruction: 1. Prepare the necessary journal entry to record each of the following independent transactions: A share split of 5 for 1. b. A share split of 2 for 4. One new ordinary share with a par value of P 15 is issued in exchange for one ordinary shares with a par value of P 25. d. One new ordinary share with a stated value of P 12 is issued in exchange for one ordinary shares with a par value of P 25. c