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What amount shall be credited to share premium

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Question - On March 1, 2020, De Blas Co, issued P1,000,000 of its 10% non-convertible bonds at 104, due February 28, 2025. Each P1,000 bond was issued with a non-detachable share warrant, each of which entitles the holder to purchase 3 ordinary shares with P25 par value for P40 each over the term of the bond. If sold without the warrants, the bonds would yield 12%. The interest on the bonds is payable annually every February 28 starting February 28, 2021.

On December 31, 2020, 200 share warrants were exercised and on June 30, 2021, 350 share warrants were exercised. Remaining share warrants were retired on maturity date.

Required -

1. What amount was assigned to the share warrants on March 1, 2020?

2. What amount shall be credited to share premium upon exercise of the share warrants on December 31, 2020?

3. What amount shall be credited to share premium upon exercise of the share warrants on June 30, 2021?

4. What amount shall be credited to share premium upon retirement of the bonds on February 28, 2025?

Reference no: EM132852946

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