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Problem 3-6 What is the total shareholder's equity on December 31, 2018?

Problem 3-7 Prepare the necessary entries related to treasury shares.

Problem 3-6 Balang Company reported the following shareholders' equity on January 1, 2018: Preference share, 100,000 shares, P10 par 1,000,000 Ordinary shares capital 5,000,000 Share Premium - Preference 50,000 Share Premium - Ordinary 200,000 Retained Earnings 100,000 During the current year, the following transaction were completed: e. a. Reacquisition of 5,000 preference shares at P11 per share. b. Purchase of 5,000 ordinary shares of treasury at P12 per share . Sold ordinary shares of treasury at P8 per share. d. Net income for the year, P3,000,000. Declared 10% cash dividends for ordinary shareholders. Required: What is the total shareholders' equity on December 31, 2018? Problem 3-7 The shareholders' equity of the Lebanon Company as of December 31, 2018 was as follows: Ordinary shares, P10 par, authorized 300,000 shares; 250,000 shares issued and outstanding P2,500,000 Share premium - issuance P3,500,000 Retained Earnings P1,740,000 On June 1, 2019, Lebanon reacquired 40,000 ordinary shares at P40. The following transactions occurred in 2019 with regard to these shares. July 1 Aug. 1 Sept. 1 Sold 15,000 shares at P48 Sold 19,000 shares at P27 Retired 1,000 shares. Lebanon's net income for 2019 was P135,000. Required: Prepare the necessary entries related to treasury shares