What amount is credited to share premium if all shares are exercised? At the beginning of the
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At the beginning of the current year, Cacai Company issued P5,000,000.00 of 12% nonconvertible bonds payable at 103 which are due in 5 years In addition, each P1,000 bond was issued with 30 detachable share warrants, each of which entitled the bondholder to purchase, for P50, one ordinary share of Cacai company, par value P25. On the date of issuance, the quoted market value of each warrant was P4. The market value of the bond ex-warrants at the time of issuance is 95. What is the carrying amount of the bonds payable on the date of issuance? At the beginning of the current year, Cacai Company issued P5,000,000.00 of 12% nonconvertible bonds payable at 103 which are due in 5 years In addition, each P1,000 bond was issued with 30 detachable share warrants, each of which entitled the bondholder to purchase, for P50, one ordinary share of Cacai company, par value P25. On the date of issuance, the quoted market value of each warrant was P4. The market value of the bond ex-warrants at the time of issuance is 95. What is the carrying amount of the bonds payable on the date of issuance?
Expert Answer:
Answer rating: 100% (QA)
1 Calculate the carrying amount of the bonds payable on the date of iss... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
Students also viewed these accounting questions
-
V Company issued a 5-year, P5,000,000 face value bonds at 109 on December 31, 2020. Each P5,000 bond was issued with 50 detachable share warrants, each of which entitled the bondholder to purchase on...
-
1. A company had 400,000 common shares outstanding during 2020.It also had 100,000 shares of 8%, $100 par nonconvertible and cumulative preferred stock outstanding for the entire year of 2020.The...
-
(a) What are the fundamental principles of measurement in accounting? Describe how an organisation can enhance the faithfulness of information. (b) Distinguish between current purchasing power...
-
Magna Jets is a medium sized company that manufactures luxury goods for several well-known chain stores. In real terms, the company has experienced only a small growth in turnover in recent years,...
-
A 75-W lossless line is 0.6 long. If S = 1.8 and r = - 60o, use the Smith chart to find ZL and Zin
-
Present Value what do you think about the Tn-State Megabucks lottery discussed in the chapter advertising $500.000 prize when the lump sum option is $250,000? Is it deceptive advertising?
-
Identify the three types of injunctions. What is the purpose of each type of injunction?
-
Commonwealth v. Shea (see Appendix A)brief only the issue of whether the ocean can be considered a deadly weapon
-
1 . What are management information systems ( MIS ) ? What purpose do these systems serve in organizations? 2 . What is accounting? How do companies use information from their accounting systems and...
-
Consider an Ising model with an infinite-range interaction such that each spin interacts equally strongly with all other spins: ^ H = c i < j i j 0 H i i H ^ = c i < j i j 0 H i i...
-
Write a paper on Factors Associated with Data Breach in Organizations and Prevention Measures?
-
Find and describe a Web site for a health club. How does the information relate to the consumer decision- making process to join the club?
-
Find and describe two sports Web sites that specifically appeal to children. How does this information relate to the process of consumer socialization?
-
Are people always an organizations most valuable asset? Why or why not? Suppose your boss asked you to summarize the major peoplerelated concerns related to opening an office in India. What issues...
-
Think of a new type of business you would like to start up or manage. Which sources would you use to recruit employees who could help you make it a success?
-
What is the current status of the Doha Round of multilateral trade negotiations? Is the agreement moving forward?
-
Assume that an investor purchases 100% of an investee company for $15 million. The fair values of the identifiable net assets are as follows: Tangible net assets which include Receivables,...
-
Stephen Schor, an accountant in New York City, advised his client, Andre Romanelli, Inc., to open an account at J. P. Morgan Chase Bank, N.A., to obtain a favorable interest rate on a line of credit....
-
Assume that Lily Corporation has outstanding 1,500 shares of $150 par callable preferred stock that were issued at $175 per share, and that no dividends are in arrears. If the call price is $185 per...
-
On January 1, 2017, Piper Company entered into an agreement with Save Mart to sell its most popular product, the gadget. The contract stipulates that the price per unit will decrease as Save Mart...
-
Use the information in RE20-2. Prepare the journal entries that Garvey Company would make in the first year of the lease assuming the lease is classified as a capital lease. Assume that Garvey is...
-
A system, consisting of \(2 \mathrm{~mol}\) of \(\mathrm{N}_{2}, 5 \mathrm{~mol}\) of \(\mathrm{H}_{2}\) and \(2 \mathrm{~mol}\) of \(\mathrm{NH}_{3}\) initially, is undergoing the following...
-
A thermodynamic system (a) Is a definite quantity of matter (b) Is surrounded by a boundary (c) Can exchange energy with its surroundings (d) All of these.
-
The study of thermodynamics enables us to understand (a) Whether the transformation of energy is feasible or not (b) To what extent the transformation will take place (c) In which direction the...
Study smarter with the SolutionInn App