Shareholders' Equity Transactions R. Carpio Products, Inc. was formed at the beginning of the year. Ordinary share has a P25 par value. The following entries affected the shareholders' equity during its first year's operations: Cash 150,000 Ordinary Shares Share Premium-Ordinary 125,000 25,000 b. Organization Expense Ordinary Shares Share Premium-Ordinary 75,000 62,500 12,500 . Cash Office Equipment Building Accounts Payable Ordinary Shares Share Premium-Ordinary 29,000 10,750 30,000 29,750 25,000 15,000 d. Cash 60,000 Ordinary Shares Share Premium-Ordinary 37,500 22,500 Cash Dividends 7,500 Cash Dividends Payable 7,500 7,500 Cash Dividends Payable Cash f. 7,500 Income Summary 30,000 Retained Earnings 30,000 h. Retained Earnings Cash Dividends 7,500 7,500 Required: Provide explanations for the journal entries and answer the following questions: 1. What is the profit for the year? 2. How many ordinary shares are outstanding? 3. What is the legal capital?

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