Ball Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible preference for a total amount of P12,500,000. At the date of issue, the ordinary shares had a market value of P120 per share and the preference shares are selling at P75 per share.  What is the amount credited to share premium from preference shares?

Q: Ball Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible…

A: Par value of preference shares=Number of shares×Par value per share=80,000×P 50=P 4,000,000

Q: ABC Co. provided these data : 5% Cumulative preferred shares , P50 par Ordinary Share capital , P10…

A: There are broadly two types of equity share included in the shareholders' equity section of a…

Q: AAA Company issued 200,000 shares at P100 par, 10% cumulative preference shares for P25,000,000. One…

A: Preference share are issued by a company to raise fund. These shares carry the following two…

Q: Mall Company issued 60,000, P50 par value, ordinary shares and 20,000, P100 par value, preference…

A: Here in this question, we are required to determine how much proceeds should be allocated to…

Q: amount to be assigned to the share warrants

A: Share warrants are the options given by the company to purchase its shares to the warrant holders.

Q: shareholders' equity section of Monica Avilado Company revealed the following information on…

A: Items to be considered in Total shareholder's equity :  Gain on sale of treasury shares  Ordinary…

Q: On Feb. 1, 2021, PT Corporation issued 5,000 shares of P100 par convertible preference shares…

A: Total par value of preference shares = No. of preference shares issued  x par value per share = 5000…

Q: "XYZ, Inc. has 1000 shares treasury stock, sells 100 shares of JD 1 par value treasury stock at JD 8…

A: Treasury shares are those shares which are issued to public and then repurchased by the corporation.…

Q: On July 1, 2018, Nokia Corporation issued 1,000 P10 par ordinary shares and 2,000 P10 par…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Corridor Company issued 6,000 share of its P100 par ordinary share to Max Las compensation for 1,000…

A: As per our protocol and guidelines are concerned we provide solution to the one question only but as…

Q: The Calvin Company issued 1,000, no par value, convertible preferred shares at $100 per share. Each…

A: Shareholder means the owner of the company who invested their money for the company growth or for…

Q: Ball Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible…

A: The share premium is the excess amount received on issuance of shares as compared to par value.

Q: 12. During the current year, Hyatt Company issued for P110 per share, 15,000 convertible preference…

A: company generally issue shares and debentures in order to raise capital. share issued may be either…

Q: 4. Raymond Corporation has 7,500 ordinary shares in its treasury with par value of P100 and cost of…

A: The Journal Entry on retirement of treasury stock is  Particulars  Amt Dr Amt Cr Common Stock…

Q: Ball Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible…

A: The question is related to the Equity Section. The share premium amount is the excess of par value…

Q: 8. If a corporation reissued at P200 per share 100 shares of treasury stock that it had previously…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: The XL Co. issued 5,000 shares of P50 par preference shares 1.000 detachable warrants at P400,000.…

A: Market value of preference share without warrants (5,000 shares * P60) P3,00,000 Market value of…

Q: C. Utter Space Corp. had the following securities outstanding at the beginning of the current year:…

A: Net income after tax = Net income - (Net income × 30%)=P 5,000,000-( P 5,000,000 × 30%)=P…

Q: Victory Company issued 8,000 ordinary shares with P200 par value and 20,000 preference shares with…

A: A Company may issue its shares at a premium where the share price at the time of sale of shares is…

Q: During 2021, FALCON Company issued 50,000 shares of ₱100 par value convertible preference share…

A: The equity share represents the ownership whereas the preference share gets the preference while…

Q: "XYZ, Inc. has 1000 shares treasury stock, sells 100 shares of JD 1 par value treasury stock at JD 8…

A: Treasury stock means where the own stock has been repurchased by company from open market and can be…

Q: The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000.…

A: Here in this question, we are required to split the consideration between share warrant and…

Q: Montes Company issued 20,000 preference shares of P100 par value for P 2,500,000, with 20,000…

A: Preference shares are issued by the company in order to raise capital. These shareholders do not get…

Q: Ball company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible…

A: When shares are issued at premium, the amount received must be bifurcated for par value of share…

Q: Firm F issued 10 million preferred convertible shares of stock at a price of 1 with a 5x liquidation…

A: Firm F issued 10 million preferred convertible shares of stock at a price of 1 with a 5x liquidation…

Q: love company issued 20,000 preference shares of 100 par value for P2,500,000 with 20,000 warrants to…

A: Preference shares Value = P 2500000 Total warrants = 20000 Warrants exercised = 18000 Warrants…

Q: Company issued 25,000 shares of its P50 par ordinary and 40,000 shares of its P25 redeemable…

A: Total market value of ordinary shares = No. of ordinary shares  x market value per share = 25,000…

Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…

A: Share issue The purpose of issue of shares to raise the capital fund which are needed for the…

Q: On Feb. 1, 2021, PT Corporation issued 5,000 shares of P100 par convertible preference shares…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: On March 1, 2020, Marla Company issued 20,000 shares of its P10 par value ordinary shares and 40,000…

A: Total market value of ordinary shares issued = No. of ordinary shares issued x selling price per…

Q: The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000.…

A: Total market value of preference shares without share warrant = No. of shares x market value per…

Q: Lilac Company has 200,000 shares of ordinary shares outstanding on January 1, 2021. On March 31,…

A: Weighted average ordinary shares outstanding  = Beginning ordinary shares outstanding + (additional…

Q: Mall Company issued 60,000, P50 par value, ordinary shares and 20,000, P100 par value, preference…

A: The statement of retained earnings reflects the change in retained earnings during a specific period

Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…

A: No. of Preference shares outstanding = Outstanding Shares - Shares Converted into the common share +…

Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…

A: equity dividend= total dividend paid-preference dividend

Q: PQR SAOG Company has in issue 600,000 OMR 1 equity shares with a current market value of RO 5 each.…

A: A share is a type of ownership unit that reflects an equal amount of a company's capital.…

Q: When 10,000 shares of P20 par value ordinary shares are issued in payment for a parcel of land with…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Ball Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible…

A: Given that, Number of preference shares = 80000 shares  Par value of preference shares = P50 total…

Q: The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000.…

A: Formula: Amount to be assigned to the share warrants = Number of detachable warrants x Per share…

Q: Raymond Corporation has 7,500 ordinary shares in its treasury with par value of P100 and cost of…

A: option D  is incorrect share premium - Treasury will have no balance at the end of the year after…

Q: Jungkook Corporation was authorized to issue 10,000 preference shares ofP200 par value and 100,000…

A: Formula: Share premium = Issued price - Par value

Q: The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000.…

A: Formula: Amount to be assigned to the share warrants = Number of detachable warrants x Purchase…

Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…

A: preference dividend=No of preference shares*par value per share*coupon rate*period outstanding/12

Q: The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000.…

A: Formula: Amount to be assigned to the share warrants = Number of detachable warrants x Purchase…

Q: 1. On March 1, 2012, Abeyance Company issued 10,000 ordinary shares with P200 par value and 20,000…

A: Shares: Shares are the units of the total stock of a company that show the fractional ownership of…

Q: On Feb. 1, 2021, PT Corporation issued 5,000 shares of P100 par convertible preference shares…

A: Per share premium=Issue price-Par value=P 110-P100=P10

Q: 10. On July 1, 2019, Samoza Corp. split its ordinary shares 5-for-1 when the market value was P100…

A: Partnership:- It is a form of business in which two or more persons join together and share profit…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.