(1) DRAWING Company provided the following data at year-end:

Authorized share capital 5,000,000

Unissued share capital 2,000,000
Subscribed share capital 1,000,000
Subscription receivable 400,000
Share premium 500,000
Retained earnings unappropriated 600,000
Retained earnings appropriated 300,000
Revaluation surplus 200,000
Treasury shares, at cost 100,000

What total amount of shareholders’ equity should be reported?

(2) COLORING Company held 10,000 shares of P10 par value as treasury reacquired for P120,000. On December 31,
2016, the entity reissued all 10,000 shares for 190,000. What is credited for the excess of the reissue price over
the cost of treasury shares?

(3) LETTERING Company provided the following information at year-end:

Preference share capital, P100 par 2,300,000

Share premium – preference share 805,000
Ordinary share capital, P10 par 5,250,000
Share premium – ordinary share 2,750,000
Subscribed ordinary share capital 50,000
Retained earnings 1,900,000
Note payable 4,000,000
Subscription receivable – ordinary share 400,000

What is the amount of legal capital?

(4) In 2015, PUNISHING Company issued 50,000 shares of P10 par value for P100 per share. In 2016, the entity
reacquired 2,000 shares at P150 per share and immediately canceled these 2,000 shares.

(a) In connection with the retirement of shares, what amount should be debited to share premium?
(b) In connection with the retirement of shares, what amount should be debited to retained earnings?

(5) TOTOY Company had 10,000 shares issued and outstanding on January 1, 2013. On March 15, the entity declared
a 2 for 1 share split when the fair value of share was P80. On December 15, the entity declared a P5 per share cash
dividend. What amount should be reported as dividends?