ellow corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows: · Preference Share,P40 par, 50,000 shares issued and outstanding- P2,000,000 · Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 · Share Premium-Preference- P300,000 · Share Premium-Ordinary- P600,000 · Retained Earnings- P750,000 Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion?

ellow corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows: · Preference Share,P40 par, 50,000 shares issued and outstanding- P2,000,000 · Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 · Share Premium-Preference- P300,000 · Share Premium-Ordinary- P600,000 · Retained Earnings- P750,000 Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 5MC

See similar textbooks

Similar questions

Yeye Corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows: • Preference Share,P40 par, 50,000 shares issued and outstanding- P2,000,000 Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 Share Premium-Preference-P300,000 - Share Premium-Ordinary- P600,000 • Retained Earnings-P750,000 Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion? A.P112,500B.P120,000C.POD.P630,000
ABC Corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information on January 31, 2021 is as follows:· Preference Share, P40 par, 50,000 shares issued and outstanding- P2,000,000 · Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 · Share Premium-Preference- P300,000· Share Premium-Ordinary- P600,000· Retained Earnings- P750,000Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion? P0 P630,000 P112,500 P120,000
ABC Corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information on January 31, 2021 is as follows:· Preference Share, P40 par, 50,000 shares issued and outstanding- P2,000,000 · Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 · Share Premium-Preference- P300,000· Share Premium-Ordinary- P600,000· Retained Earnings- P750,000Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of A. P0 B. P630,000 C. P112,500 D. P120,000
Sariling Sikap Corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows:· Preference Share,P40 par, 50,000 shares issued and outstanding- P2,000,000 · Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 · Share Premium-Preference- P300,000· Share Premium-Ordinary- P600,000· Retained Earnings- P750,000Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion? P630,000 P112,500 P120,000 P0
On March 1, 2021, Riza Corp. issued 1,000 shares of its P20 par value ordinary share and 2,000 shares of its P20 par value convertible preference share for a total of P80,000. At this date, Riza ordinary share was selling for P36 per share, and the convertible preference share was selling for P27 per share. What amount of the proceeds should be allocated to Riza's convertible preference share?
On March 1, 2021, a company issued 1,000 shares of its P20 par value ordinary share and 2,000 shares of its P40 par value convertible preference share for a total consideration of P160,000. At this date, the company’s ordinary shares were selling at P36 per share, and the convertible preference shares were selling at P54 per share. Determine the amount to be credited to share premium for the convertible preference share.
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 6,000,000 ₱ 1,500,000 and 0 ₱ 1,500,000 and 3,500,000 ₱ 1,500,000 and 4,500,000
On March 1, 2019, Mall Co. issued 60,000, P50 par value, ordinary shares and 20,000, P100 par value, preference shares for a total consideration of P7,500,000. At this date, the ordinary share was selling for P100 per share and the preference share was selling for P150 per share. What amount of the proceeds should be allocated to the preference shares?
NEED ASAP. Solve correctly and show your computations. On March 1, 2021, Hans Corp. issued 1,000 shares of its P20 par value ordinary share and 2,000 shares of its P20 par value convertible preference share for a total of P80,000. At this date, Hans ordinary share was selling for P36 per share, and the convertible preference share was selling for P27 per share. What amount of the proceeds should be allocated to Hans’s convertible preference share?
On March 1, 2020, Marla Company issued 20,000 shares of its P10 par value ordinary shares and 40,000 shares of its P10 par value convertible preference share for a total of P1,800,000. At this date, the ordinary share was selling for P20per share and the convertible preference share was selling for P30 per share. What amount of the proceeds should be allocated to the convertible preference shares
On April 1,2020, ABC Corporation, a newly formed company, had the following shares issued and outstanding:Ordinary share, P 20 par ( 20,000 shares originally issued for P 60 per share)Preference share, P 50 par ( 6,000 shares originally issued for P 100 per share) As of April 1, 2020, ABC Inc.’s total legal capital and total shareholder’s equity, respectively are a.P 1,100,000 and P 1,800,000 b. P 700,000 and P 1,800,000 c. P 1,800,000 and P 1,800,000 d. P 1,800,000 and P 1,100,000
XYZ Corporation was incorporated on January 1, 2021 with the following authorized capitalization Ordinary Share Capital, 200,000 shares, P100 stated value 10% Preference Share Capital, 200,000 shares, P50 par During 2021, the entity issued 150,000 ordinary shares for a total of P18,000,000 and 50,000 preference shares at P60 per share. In addition, on December 15, 2021, subscription for 20,000 preference shares were taken at a subscription price of P100 per share. These subscribed shares were paid for on June 15, 2022 Net income for 2021 was P5,000,000, What amount should be reported as total contributed capital on December 31, 2021?