Please help me understand the problem. Kindly explain what does the problem wants to emphasize? I want to answer it on my own but I don't understand the problem. I hope you can help me. On July 1, 2021, Queen Company purchased for P2,400,000,50,000 newly issued 6% cumulative P20 par value preferenceshares. Each preference share had one share warrant attachedwhich entitled the holder to acquire at P15 one ordinary shareof P10 par value for each two warrants held.The market price on this date of the preference share withoutwarrant was P50 and the market price of the share warrantwas P10. On December 1, 2021, all the share warrants wre soldfor P700,000.

as far as my knowledge the question want to ask you two things: 1. what amount should be recorded as…

Answered: July 1, 50,000 new he oreg Fo

Business

Accounting

July 1, 50,000 new he oreg Fo

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 23E

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Please help me understand the problem. Kindly explain what does the problem wants to emphasize? I want to answer it on my own but I don't understand the problem. I hope you can help me.

On July 1, 2021, Queen Company purchased for P2,400,000,
50,000 newly issued 6% cumulative P20 par value preference
shares. Each preference share had one share warrant attached
which entitled the holder to acquire at P15 one ordinary share
of P10 par value for each two warrants held.
The market price on this date of the preference share without
warrant was P50 and the market price of the share warrant
was P10. On December 1, 2021, all the share warrants wre sold
for P700,000.

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