Orlando Company issued 8,000 convertible preference shares with P100 par value at P105 per share. One...
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Orlando Company issued 8,000 convertible preference shares with P100 par value at P105 per share. One preference share can be converted into three ordinary shares with P25 par value at the option of the shareholder. Subsequently, all of the preference shares were converted into ordinary shares. The market value of the ordinary share on the date of conversion was P30. What amount should be credited to share premium as a result of the issuance of the preference shares and the subsequent conversion into ordinary shares? Orlando Company issued 8,000 convertible preference shares with P100 par value at P105 per share. One preference share can be converted into three ordinary shares with P25 par value at the option of the shareholder. Subsequently, all of the preference shares were converted into ordinary shares. The market value of the ordinary share on the date of conversion was P30. What amount should be credited to share premium as a result of the issuance of the preference shares and the subsequent conversion into ordinary shares?
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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