What is the increase in the share capital and share premium

Assignment Help Accounting Basics
Reference no: EM132849844

Question - Clay Company had P600.000 convertible 8% bonds payable outstanding on June 30, 2011. Each P1,000 bond was convertible into 10 ordinary shares of P50 par value. On July 1, 2011, the interest was paid to bondholders, and the bonds were converted into ordinary shares, which had a fair value of P75 per share. The unamortized premium on these bonds was P12,000 at the date of conversion. No equity component was recognized when the bonds were originally issued. What is the increase in the share capital and share premium, respectively, as a result of the bond conversion?

a. 300,000 and 312,000

b. 306,000 and 306,000

c. 450,000 and 162,000

d. 600,000 and 12,000

Reference no: EM132849844

Questions Cloud

Provide the maintenance efficiency variance : You have standards of 5 minutes of machine time per unit produced and $20 of maintenance cost per hour of machine usage. Provide maintenance efficiency variance
Find a healthcare company and examine the financial policy : Find a healthcare company (department or company-wide) of your choosing and examine the financial policy within that company
How much is quail charitable contribution deduction : Quail Corporation (a calendar year C corporation) had the following income and expenses in 2021: How much is Quail charitable contribution deduction
Why did choose to pursue education online : Why did you choose to pursue your education online? How has that decision helped to shape your life? Maximum three (3) page essay (12 pt. font, double-spaced)
What is the increase in the share capital and share premium : No equity component was recognized when the bonds were originally issued. What is the increase in the share capital and share premium
Why would mackay essay be considered an argumentative essay : Why would MacKay's essay be considered an argumentative essay rather than an exploratory essay? Carefully explain your answer in one paragraph.
Create a navigation - master page : Visual Communication Design - Create a text box and fill it with the reference green colour: X 540, Y 30, W 260, H 40
Compute the days sales uncollected : Net Accounts Receivable of $1000, and Net Sales of $12000. Last year's Net Accounts receivable was 1400. Compute the Days Sales Uncollected (ACP)
What would be the amount applied to paying : Terms: Borrowed $30,000, by signing a 5 year installment note with 5% interest. What would be the amount applied to paying

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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