During the current year, the following selected transactions were completed: 1. Sold and issued 18,000 ordinary shares for cash at 90 per share to FAITH. 2. Sold and issued 5,000 preference shares for cash at 108 to FAITH. 3. Issued 2,000 ordinary shares for a piece of land that will be used for plant site. The land has a fair value of $150,000 and the shares are currently selling at #80 per share. 4. Issued 1,000 ordinary shares for services received from stock brokers. Total brokers' fee was $100,000 and the shares of stocks was selling at $75 per share. 5. Received subscriptions of 30,000 ordinary shares at #75; and 10,000 preference shares at $112. 6. Collected 60% of the previous subscriptions. 7. Full collection was made for 25,000 ordinary shares and 9,500 preference shares, thus warranting the issuance of their certificates. 8. The remaining subscriptions for ordinary shares were declared delinquent and incurred related expense amounting to P45,000.

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.