During 2021, FALCON Company issued 50,000 shares of ₱100 par value convertible preference share capital for ₱120 per share. One preference share can be converted into three ordinary shares with ₱10 par value at the option of the preference share shareholder. On December 31, 2021, when the market value of the ordinary share was ₱50 per share, all of the preference share capital was converted. What amount should FALCON credit to ordinary share capital and share premium as a result of the conversion? * ₱ 1,500,000 and 4,500,000 ₱ 1,500,000 and 6,000,000 ₱ 1,500,000 and 3,500,000 ₱ 1,500,000 and

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Accounting Treatments on the issuance of stock rights by the company and exercise of stock rights.…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Balance in Funk Company’s Ordinary share account after the share split = No. of ordinary shares x…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: The stockholder's equity will be changed when the stock rights holder will exercise the stock rights…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000  x 5/1 = 250,000 shares

Q: On March 1, 2021, a company issued 1,000 shares of its P20 par value ordinary share and 2,000 shares…

A: Amount to be credited to share premium for the convertible preference share will be amount…

Q: On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the…

A: Note: There will ve no change in paid-up capital and additional paid-in capital balance due to…

Q: On December 27, 2019, ABC Corporation issued 5,000 shares of 10% cumulative, P 100 par value…

A: Share premium per preference share = Fair value of preference share - par value of preference share…

Q: On June 1, 2020, Sunny Corporation declared a share capital dividend entitling its shareholders to…

A: Treasury stocks are the stocks held by the company itself pursuant to its purchase from the market.

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: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Right Shares - It is refer to the issuance of those shares which was offered by the company to their…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Right issue Right issue which is provided by the company to its existing shareholders to acquire…

Q: amount of the proceeds should be allocated to Riza's convertible preference share?

A: Ans: The total proceeds are divided between the two different investments in proportion to their…

Q: On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the…

A: No. of shares issued after reverse stock split = No. of  common stock outstanding x reverse stock…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Comical Company issued rights to stockholders to subscribe to an additional share of its common…

Q: On Feb. 1, 2019, Patag Corp. issued 5,000 shares of P100 par convertible preference shares for P110…

A: Company can issue two types of shares. One is common shares and other is preference shares.…

Q: In 2019, Blue Corporation issued 15,000 shares for P 110 per share of P 100 par convertible…

A: Conversion of Convertible Preferences Shares to Common Shares According to the accounting procedures…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: When the share split occurs, it increases the number of shares but the overall value of shares does…

Q: In 2020, Caroline Company issued for P105 per share, 8,000 shares of P100 par value convertible…

A: Number of ordinary shares to be issued on conversion = 8,000 x 3 = 24,000 shares

Q: On December 27, 2019, ABC Corporation issued 5,000 shares of 10% cumulative, P 100 par value…

A: Issues of shares at a premium means shares have been issued at a value that is more than the face…

Q: During 2021, Lamb Company issued 10,000 shares of P100 par value convertible preference share for…

A: Solution: Nos of common shares issued on conversion of preferred shares = 10000*3 = 30000 shares…

Q: At December 21, 2020, BFAR Corp. had 20,000 treasury shares that had been reacquired in 2020 at PHP…

A: The treasury stock shares are the shares that are repurchased by the company from the shareholders…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000  x 5/1 = 250,000 shares

Q: 35.On March 1, 2021, a company issued 1,000 shares of its P20 par value ordinary share and 2,000…

A: Disclaimer: "Since you have asked multiple question we answered first question for you if you want…

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

A: Ordinary share capital = No. of preference shares x conversion ratio x par value per ordinary shares…

Q: In 2019, Blue Corporation issued 15,000 shares for P 110 per share of P 100 par convertible…

A: There are two types of shares which can be issued by organisation to raise the fund; 1) Ordinary…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Right issue is the company jurisdiction to issue shares to existing shareholder before make issue…

Q: On January 1, 2020, Crane Corporation issued $8 million of 10-year, 7% convertible debentures at…

A: Convertible bonds are defined as the bonds that the holder or receiver can convert these bonds into…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Right Shares - It is refer to those issued of new shares which company offers to their existing…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: The stock split refers to cancel the old shares issued and issuing new shares against old shares.

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: The company is not required to do accounting on the issuance of stock rights. The transaction is…

Q: On March 2, 2022, Gumamela Corporation issued 4,000 shares of 6% cumulative P100 par value…

A: One non- detachable share warrant for one share total mumber of shares warrant =4000 shares x 1…

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

A: Ordinary share capital = No. of preference shares x conversion ratio x par value per  ordinary…

Q: In 2019, Cassandra Company issued for P110 per share, 15,000 convertible preference shares of P100…

A: Solution: Amount should be credited to ordinary share capital on December 31, 2020 = Nos of…

Q: on March 1, 2021, Riza Corp. Issued 1,000 shares of its P20 par value ordinary share and 2,000…

A: A preference share that is issued on the terms that it is liable to be converted to an agreed number…

Q: On March 1, 2021, a company issued 1,000 shares of its P20 par value ordinary share and 2,000 shares…

A: When more than one class of stocks are issued together at a lumpsum price, the lump-sum amount is…

Q: On May 8, 2022, BFAR Corp. declared 10% share dividend to its preference shareholders to be…

A: Share Dividend - Share Dividend is the shares issued by the company to its already existing…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Cash increase 60,000 shares * P25  P1,500,000 Right shares increase  12000 shares * P50  P600,000…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Given in the question the following information A stockholder can buy one new share for every 5…

Q: During 2020, Nishinoya Corporation 5,000 convertible preference shares of P100 par value per share…

A: Total Market value of convertible preference shares = No. of convertible preference shares x Market…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: SOLUTION- THE COMPANY HAS ISSUED A 1:5 RIGHT ISSUE TO SHAREHOLDERS FOR P25.

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000  x 5/1 = 250,000 shares

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Increase in stockholders equity = (Cash paid per share + market price of the right) x No. of shares…

Q: What is the effect on the stockholders’ equity as a result of the issuance of stock rights? a.…

A: Total number of right shares = total number of shares / share per rights = 100000/5 = 20,000 Issue…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000  x 5/1 = 250,000 shares

Q: In 2019, Cassandra Company issued for P110 per share, 15,000 convertible preference shares of P100…

A: Formula: Ordinary share capital = Total number of ordinary shares x PAR value.

Q: On December 27, 2019, ABC Corporation issued 5,000 shares of 10% cumulative, P 100 par value…

A: Share premium per preference share = Fair value of preference share - par value of preference share…

Q: In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value convertible…

A: The conversion of preference shares into ordinary shares will be booked at book value of preference…

Q: What amount of the proceeds should be allocated to Hans’s convertible preference share?

A: WORKING NOTE WITH EXPLANATION:

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.