How much is the amount credited to share premium

Assignment Help Accounting Basics
Reference no: EM133085401

Question - On July 1,2021, Devera Corporation issued P5 million of its 10%, 7-year bonds with one detachable warrant attached to each P1,000 bond. Each warrant provides for the right to purchase 20 shares of P15 par value ordinary for P20 each. The market value of the ordinary share was P25 each at July 1, 2021. At that time, the bonds without the warrants are selling at 97. The compound financial instrument was sold at 104. Assuming that all warrants are exercised and recorded in the accounts, how much is the amount credited to share premium?

a. P850,000

b. P530,000

c. P580,000

d. P350,000

Reference no: EM133085401

Questions Cloud

Conducting international business : Purpose of Case Study is to potentials of business expansion of Jamuna Grouop of Bangladesh. Specifically, if (i) the Jamuna Group is under review is actually c
Describe healthcare program or policy outcomes : Describe the healthcare program or policy outcomes. How much of an impact was realized with the program or policy selected?
Proactive approaches to stakeholder relationships : What are the differences between the reactive, defensive, accommodative, and proactive approaches to stakeholder relationships?
Challenges for a dio implementing a mindset infrastructure : "MINDSET" components of today's digitally integrated organisation (DIO). Outline two (2) challenges for a DIO implementing a MINDSET infrastructure.
How much is the amount credited to share premium : Assuming that all warrants are exercised and recorded in the accounts, how much is the amount credited to share premium
How can organization maximize extent : How can an organization maximize the extent to which its managers take an outside view in their decisions?
Aspects that may not be recorded on title : Name at least five other aspects that may not be recorded on title.
How to calculate the company a present value : The bond default rate of Company A is 3%, the direct and indirect cost is 30% of the company A value. How to calculate the Company A present value
Effects in the e-commerce indian market : Were there any network effects in the e-commerce Indian market?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a cost of goods sold section for the year ending

The ending inventory is $20,000. Prepare a cost of goods sold section for the year ending August 31, 2022 (periodic inventory)

  Find the weighted average number of shares

On January 1, 2010, Warren Corporation had 1,000,000 shares of common stock outstanding. Compute the weighted average number of shares

  Prepare the journal entry to record the april

Prepare the journal entry to record the April 10 payment to Reece Company by Jeet. For those boxes in which no entry is required, leave the box blank

  What is the equity at the beginning of the year

Assets Liabilities Beginning of Year: $28,000 $15,000 End of Year: $61,000 $25,000. What is the equity at the beginning of the year

  Prepare a production budget for the pillow manufacturing

Prepare a production budget for the pillow manufacturing company. The company did not have any inventory of pillows at the end of September

  Calculate how much must he set aside now

The boy is eight years old now and will start college in 12 years' time. Calculate how much must he set aside now to have RM 100,000

  Determine the balance in each partner capital account

Question - Partnership entries, profit allocation, admission of a partner. Determine the balance in each partner capital account

  What is the measurement of the equipment on December

The carrying amount of the equipment is P3,000,000 and the fair value is P2,5000,000 on November 1, 2025. What is the measurement of the equipment on December

  Affect the company revenue goals

Explain how purchase of the apple press might affect the company's revenue goals. Based on this information, explain whether Anthony's Orchard should invest in the apple press. Support your response with relevant information provided in the case s..

  What amount of interest will have to include in tax returns

Ms. Marilyn Lox invests in a newly issued debt instrument on April 1, 2020. It has a maturity value of $50,000, matures on March 31, 2024, and pays interest.

  Compute the break-even point of sales in units

An analysis of cost behavior indicates that the following are variable: 75% of the cost of goods sold, Compute the break-even point of sales in units

  How many additional units must be sold

Company A is currently selling 15,000 units per month. If the company wants to increase operating income by 20%, how many additional units must be sold

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd