At the beginning of current year, Case Company issuedP5,000,000 of 12% nonconvertible bonds payable at 103 whichIn addition, each P1,000 bond was issued with 30 detachableshare warrants, each of which entitled the bondholder tpurchase, for P50, one ordinary share of Case. Company, parOn the date of issuance, the quoted market value of eachwarrant was P4. The market value of the bonds ex-warrantsProblem 7-11 (AICPA Adapted)are due in five years.tovalue P25.at the time of issuance is 95.1. What is the carrying amount of the bonds payabledate of issuance?on thea. 5,000,000b. 4,750,000c. 5,150,000d. 4,550,0002. What amount of the proceeds from the bond issue shouldbe recognized as an increase in shareholders' equity?a. 600,000b. 300,000c. 200,000d. 400,0003. What amount is credited to share premium if all of theshare warrants are exercised?a. 4,350,000b. 3,750,000c. 4,150,000d.

Bonds payable seems to be a liability account typically includes the amount owing by the issuers to…

1. What is the carrying amount of the bonds payable on the purchase, for P50, one ordinary share of Case. Company, par share warrants, each of which entitled the bondholder to In addition, each P1,000 bond was issued with 30 detachable At the beginning of current year, Case Company 18sued Problem 7-11 (AICPA Adapted) P5,000,000 of 12% nonconvertible bonds payable at 103 are due in five years. which value P25. On the date of issuance, the quoted market value of ce warrant was P4. The market value of the bonds ex-warran at the time of issuance is 95. date of issuance? a. 5,000,000 b. 4,750,000 c. 5,150,000 d. 4,550,000 What amount of the proceeds from the bond issue should be recognized as an increase in shareholders' equity? a. 600,000 b. 300,000 c. 200,000 d. 400,000 What amount is credited to share premium if all of the share warrants are exercised? . 4,350,000 - 3,750,000 4,150,000

1. What is the carrying amount of the bonds payable on the purchase, for P50, one ordinary share of Case. Company, par share warrants, each of which entitled the bondholder to In addition, each P1,000 bond was issued with 30 detachable At the beginning of current year, Case Company 18sued Problem 7-11 (AICPA Adapted) P5,000,000 of 12% nonconvertible bonds payable at 103 are due in five years. which value P25. On the date of issuance, the quoted market value of ce warrant was P4. The market value of the bonds ex-warran at the time of issuance is 95. date of issuance? a. 5,000,000 b. 4,750,000 c. 5,150,000 d. 4,550,000 What amount of the proceeds from the bond issue should be recognized as an increase in shareholders' equity? a. 600,000 b. 300,000 c. 200,000 d. 400,000 What amount is credited to share premium if all of the share warrants are exercised? . 4,350,000 - 3,750,000 4,150,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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