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Question - At the beginning of the current year, Ria Company issued 10,000 ordinary shares of P20 par value and 20,000 convertible preference shares of P20 par value for a total of P800,000.
At this date, the ordinary share was selling for P36 and the convertible preference share was selling for P27.
Required -
1. What amount of the proceeds should be allocated to the preference shares?
2. What amount of the proceeds should be allocated to the ordinary shares?
3. What amount should be recorded as share premium from the issuance of preference shares?
4. What amount should be recorded as share premium from the issuance of ordinary shares? Please show solution?
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