In 2019, Cassandra Company issued for P110 per share, 15,000 convertible preference shares of P100 par value. One preference share may be converted into three ordinary shares of P25 par value at the option of the preference shareholder. On December 31, 2020, all of the preference shares were converted into ordinary shares. The market value of the ordinary share at the conversion date was P40. What amount should be credited to ordinary share capital on December 31, 2020? a. P1,800,000 b. P1,500,000 c. P1,125,000 d. P1,650,000
In 2019, Cassandra Company issued for P110 per share, 15,000 convertible preference shares of P100 par value. One preference share may be converted into three ordinary shares of P25 par value at the option of the preference shareholder. On December 31, 2020, all of the preference shares were converted into ordinary shares. The market value of the ordinary share at the conversion date was P40. What amount should be credited to ordinary share capital on December 31, 2020? a. P1,800,000 b. P1,500,000 c. P1,125,000 d. P1,650,000
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
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In 2019, Cassandra Company issued for P110 per share, 15,000 convertible preference shares of P100 par value. One
a. P1,800,000
b. P1,500,000
c. P1,125,000
d. P1,650,000
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