On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible preference shares. There shares were originally issued at P250 each. On the same date, 20,000 preference shares were converted into 5,000 P800-par ordinary shares. On June 30, The 10,000 same class of preference shares are issued for P300 with one share warrants each. The fair value of the share and warrants on that date is P300 and P20. At yearend, P3,000,000 worth of dividends was declared. Questions: 1. How much of the dividends declared are applicable to the ordinary shares?

On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible preference shares. There shares were originally issued at P250 each. On the same date, 20,000 preference shares were converted into 5,000 P800-par ordinary shares. On June 30, The 10,000 same class of preference shares are issued for P300 with one share warrants each. The fair value of the share and warrants on that date is P300 and P20. At yearend, P3,000,000 worth of dividends was declared. Questions: 1. How much of the dividends declared are applicable to the ordinary shares?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 5PB: Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue...

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