In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value convertible preference share capital. One preference share can be converted into three ordinary shares of Eden’s P30 par value at the option of the shareholder. In August 2020, all of the preference shares were converted into ordinary shares. The market value of the ordinary share on the date of conversion was P60 per share. What amount will be credited to share premium?
In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value convertible preference share capital. One preference share can be converted into three ordinary shares of Eden’s P30 par value at the option of the shareholder. In August 2020, all of the preference shares were converted into ordinary shares. The market value of the ordinary share on the date of conversion was P60 per share. What amount will be credited to share premium?
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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#18
In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value
convertible
ordinary shares of Eden’s P30 par value at the option of the shareholder. In August 2020, all of
the preference shares were converted into ordinary shares. The market value of the ordinary
share on the date of conversion was P60 per share. What amount will be credited to share
premium? 2,880,000 pls provide correct solution for the given answer
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