Issuance of Ordinary and Preference Shares Villarama Corporation was organized on Jan. 1, 2018. It is authorized to issue 20,000 shares of 6%, P50 par value preference shares, and 50,000 shares of...

Extracted text: Issuance of Ordinary and Preference Shares Villarama Corporation was organized on Jan. 1, 2018. It is authorized to issue 20,000 shares of 6%, P50 par value preference shares, and 50,000 shares of no-par ordinary shares with a stated value of P10 per share. The following stock transactions were completed during the year: Jan. 10 Issued 10,000 ordinary shares for cash at P35 per share. Mar. 1 Issued 10,000 preference shares for cash at P55 per share. Issued 2,500 ordinary shares for land. The asking price of the land was P90,000; the fair market value of the land was P85,000. Apr. 1 May 1 Issued 7,500 ordinary shares for cash at P40 per share. Issued 1,000 ordinary shares to lawyers in payment of their bill for P50,000 pertaining to services rendered in helping the corporation organize. Aug. 1 Sep. 1 Issued 500 ordinary shares for cash at P60 per share. Nov. 1 Issued 2,000 preference shares for cash at P53 per share. Required: 1. Journalize the transactions. 2. Post to the shareholders' equity accounts. 3. Prepare the share capital section of the shareholders' equity as at Dec. 31, 2018.