Which journal entry on the date of issuance will include

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Problem 1: Angel Co. issues 10,000 shares of 10 par value convertible preference shares for 12 cash per share. Each share is convertible into 4 ordinary shares. On this date the 1 par value ordinary shares are selling for 3 per share. Approximately 2 years later, Angel's shareholders convert their preference shares into ordinary shares. On the date of conversion the preference shares are selling for 16 and the ordinary shares are selling for 5 per share. The journal entry on the date of issuance will include which of the following?

a. Credit Share Capital-Preference 20,000.
b. Credit Share Premium-Ordinary 20,000.
c. Credit Share Capital-Preference 100,000.
d. Debit Share Premium-Ordinary 20,000.

Reference no: EM132928210

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