Reference no: EM132698492

On January 5, 2019, PE Corporation received a charter granting the right to issue 5,000 shares of P100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of P10 par value common stock. It then completed these transactions.

Jan. 11 Issued 20,000 shares of common stock at P16 per share.
Feb. 1 Issued to Sanchez Corp. 4,000 shares of preferred stock for the following assets: equipment with a fair value of P50, 000; a factory building with a fair value of P160, 000; and land with an appraised value of P270, 000.
July 29 Purchased 1,800 shares of common stock at P17 per share. (Use cost method.)
Aug. 10 Sold the 1,800 treasury shares at P14 per share.
Dec. 31 Declared a P0.25 per share cash dividend on the common stock and declared the preferred dividend. Dec. 31 Closed the Income Summary account. There was a P175, 700 net income.

Instructions :

Question (a) Record the journal entries for the transactions listed above.

Question (b) Make the stockholders' equity section of PE Corporation's balance sheet as of December 31, 2019.