What amount should be credited to share premium

Assignment Help Financial Accounting
Reference no: EM132736723

During 2026, Grab Food issued for P 110 per share, 15,000 convertible preference shares of P 100 par value. One preference share may be converted into three ordinary shares of P 25 par value at the option of the preference shareholder.

On December 31, 2026, 80% of the preference shares were converted into ordinary shares. The market value of the ordinary share at the conversion date was P 40.

Problem 1: What amount should be credited to share premium - ordinary shares as a result of conversion?

Reference no: EM132736723

Questions Cloud

Determine the carrying value of the liability : On June 1, 2019, Madagascar Corporation discounted its own P3,000,000 non-interest bearing note with Nemo Universal Bank at 10%. The note is due on May 31.
How many new shares are issued to the vc : A VC has a target rate of 70% per annum, makes an investment of $2.0 million today, What ownership percentage does the VC require to make the investment?
Explain the features of just-in-time manufacturing system : Shebbit's is a leading specialty retailer and the world's largest direct marketer of hunting, fishing, camping and related outdoor merchandise. Founded in 1961.
What are the main driving and restraining forces : What are the main driving and restraining forces and What actions can you recommend to reduce the potency of the restraining forces?
What amount should be credited to share premium : What amount should be credited to share premium - ordinary shares as a result of conversion? During 2026, Grab Food issued for P 110 per share
Describing the functions of management : Discuss the Mintzberg approach to describing the functions of management. Briefly discuss each function.
Identify those that enjoy greater recognition : Identify those that enjoy greater recognition and status than others. What accounts for these differences in status?
Find what monthly lease payment due in advance charged : Find What monthly lease payment due in advance should be charged for a tract of land valued at $25,000 if the agreed interest is 5.13% compounded annually?
Determine the total salaries expense and total revenue : Civilization is an upscale university housing complex providing all the amenities of private townhouse living and a full service 24-hour cafeteria for busy.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Under the lease agreement

What is the future value of 22 periodic payments of $4,140 each made at the beginning of each period and compounded at 8%? Cullumber Company recently signed a lease for a new office building, for a lease period of 10 years. Under the lease agreement,..

  Compute the sharpe ratios of the fund and gold

Compute the Sharpe ratios of the fund and gold. Based only on these ratios, how desirable does investment in the fund by itself compare to investment

  How much will the total contribution margin

Brad's Breads can produce and sell only one of the following two products: Oven Hours Required Contribution Margin per Unit Classic Bread 0.3 $4 Premium Bread 0.4 $5 The company has oven capacity of 600 hours. How much will the total contribution mar..

  Target costing

Oregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $700 each. An independent catalog compan..

  Calculate depreciation on the drilling machine

An important component of the machine is the drill housing component that will need to be replaced in five years. The $200,000 cost of the drill housing component is included in the $840,000 cost of the machine. Calvin uses the straight-line deprecia..

  Prepare the current liabilities section of the balance sheet

Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in accounts payable. Journalize the January transactions.

  Deal with uncertainty in the budgeting process

Discuss how do we deal with uncertainty in the budgeting process and please also identify unique characteristics of budgeting for service companies.

  Illustrate what accounting entry will they make on june

The original cost was $2,000. They were billed $2,100 as there was a price increase. Illustrate what accounting entry will they make on June 18?

  Find what is the amount of the firm ebit

Expenses of $290,645; depreciation of 393,914; cost of goods sold of $2,593,916; and interest expense of 187,196. What is the amount of the firm's EBIT

  Find what is the ultimate objective of financial management

Find What is the ultimate objective of financial management? to maximize shareholder value (ensure that ROA is higher than the cost of financing)

  How many performances of obligations are there in sale

Aria Perfume, Inc., sold 3,210 boxes of white musk soap during January of 2016 at the price of $90 per box. The company offers a full refund for any product returned with 30 days from the dated of purchase. Based on historical experience, Aria expect..

  Find how much debt can the firm borrow from the bank

$1 million, and a tax rate of 35 percent. Its bank agrees to lend up to 4 times its EBITDA. How much debt can the firm borrow from the bank?

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