1. What is the total additional paid-in capital? 2. What is the total contributed capital? 3....
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1. What is the total additional paid-in capital? 2. What is the total contributed capital? 3. What is the total legal capital from ordinary shares? 4. What is the total legal capital from preference shares? 5. What is the total stockholder's equity? The stockholders' equity for the IT Co. on December 31 was: Preference share, P20 par, 60, 000 shares issued and outstanding 1,200,000 Share premium in excess of par- preference share 300,000 Ordinary share, P10 par, 300, 000 shares issued and outstanding 3,000,000 Share premium in excess of par - Ordinary share Accumulated profit 600,000 2,500,000 Each share of preference is convertible into 1 ordinary share. In June, IT converted 4,000 of preference shares into ordinary shares. Required: 1. Prepare journal entry to take up the conversion 2. Assuming that each share of preference is convertible into 4 ordinary shares and IT converted 4. 000 of preference shares into ordinary, what is the entry to take up the conversion? The XL Co. decides to issue 2, 000shares of P30 par preference shares with 1, 000 detachable warrants. The package sells for P120. The warrants enable the holder to purchase 1, 000 ordinary shares of P10 par at P40 per share. Immediately after the issuance of the share, the warrants are selling at P20 per warrant and the market value of the preference without the warrants is P90. Required: Determine the following: 1. The amount to be assigned to the share warrants 2. The amount to be credited to share premium in excess of par if 60% of the warrants are exercised 3. The expiration of the remaining warrants shall involve a credit to: 1. What is the total additional paid-in capital? 2. What is the total contributed capital? 3. What is the total legal capital from ordinary shares? 4. What is the total legal capital from preference shares? 5. What is the total stockholder's equity? The stockholders' equity for the IT Co. on December 31 was: Preference share, P20 par, 60, 000 shares issued and outstanding 1,200,000 Share premium in excess of par- preference share 300,000 Ordinary share, P10 par, 300, 000 shares issued and outstanding 3,000,000 Share premium in excess of par - Ordinary share Accumulated profit 600,000 2,500,000 Each share of preference is convertible into 1 ordinary share. In June, IT converted 4,000 of preference shares into ordinary shares. Required: 1. Prepare journal entry to take up the conversion 2. Assuming that each share of preference is convertible into 4 ordinary shares and IT converted 4. 000 of preference shares into ordinary, what is the entry to take up the conversion? The XL Co. decides to issue 2, 000shares of P30 par preference shares with 1, 000 detachable warrants. The package sells for P120. The warrants enable the holder to purchase 1, 000 ordinary shares of P10 par at P40 per share. Immediately after the issuance of the share, the warrants are selling at P20 per warrant and the market value of the preference without the warrants is P90. Required: Determine the following: 1. The amount to be assigned to the share warrants 2. The amount to be credited to share premium in excess of par if 60% of the warrants are exercised 3. The expiration of the remaining warrants shall involve a credit to:
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Answers 1 To calculate the total additional paidin capital we need to add the share premium in exces... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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