37. Share warrants (from the bonds with detachable warrants) a.5,400 b.9,000 c.14,400 d.0 http://e.No answer from the given choices. 38. Ordinary share capital (year-end balance, 2021) a.21,411,000 b.21,611,000 c.21,000,000 d.5,411,000 http://e.No answer from the given choices. 39. Share premium from bond conversion a.473,184 b.463,408 c.400,000 d.126,816 http://e.No answer from the given choices. 40. Share premium from the exercise of share warrants (Nov.1, 2021) a.5,600 b.41,800 c.14,400 d.0 e.No answer from the given choices
37. Share warrants (from the bonds with detachable warrants) a.5,400 b.9,000 c.14,400 d.0 http://e.No answer from the given choices. 38. Ordinary share capital (year-end balance, 2021) a.21,411,000 b.21,611,000 c.21,000,000 d.5,411,000 http://e.No answer from the given choices. 39. Share premium from bond conversion a.473,184 b.463,408 c.400,000 d.126,816 http://e.No answer from the given choices. 40. Share premium from the exercise of share warrants (Nov.1, 2021) a.5,600 b.41,800 c.14,400 d.0 e.No answer from the given choices
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 25E
Related questions
Concept explainers
Question
37. Share warrants (from the bonds with detachable warrants)
a.5,400
b.9,000
c.14,400
d.0
http://e.No answer from the given choices.
38. Ordinary share capital (year-end balance, 2021)
a.21,411,000
b.21,611,000
c.21,000,000
d.5,411,000
http://e.No answer from the given choices.
39. Share premium from bond conversion
a.473,184
b.463,408
c.400,000
d.126,816
http://e.No answer from the given choices.
40. Share premium from the exercise of share warrants (Nov.1, 2021)
a.5,600
b.41,800
c.14,400
d.0
e.No answer from the given choices
![AQUAMARINE Corporation had the following account balances as of December
31,
2020:
8% convertible bonds @face value
Php 2,000,000
Share capital (4,000,000 shares authorized, Php 10 par
1,600,000 shares issued)
1,600,000
Share Premium
4,590,000
Retained Earnings
4,930,000
Treasury Shares at Cost
650,000
Transactions during 2021 and other information relating to the Corporations
liability
and
equity
follows:
were
as
On January 2, 2017, AQUAMARINE Corporation issued Php 2,000,000 of 8%
convertible bonds at par. The maturity of the bond is on January 1, 2021 and
interest is payable annually every January 1. The bond contract entitles the holders
to receive 6. Php 10 par value ordinary shares in exchange for each 100 bonds.
On the date of issue, the prevailing market interest rate for similar debt without the
conversion option is 10%.
PV of Principal
0.6830
3.1699
PFV of Interest
Jan. 1.
2021
The holders of the bonds with a total face value of Php 1,000,000 exercised
the conversion privilege. On that date, the bonds were selling at Php 110
and the ordinary shares at Php 42.
Jan.
The corporation reissued 30,000 of its 50,000 treasury shares for Php 550,000.
The treasury shares had been acquired February 28, 2020.
15,
2021
Feb. 1,
2021
Sold 180, Php 1,000, 9% bonds due February 1, 2031 at Php 103 with one
detachable share warrant attached to each bond. Interest is payable
annually on February 1. The fair value of the bonds without the share
warrants is Php 95. The detachable warrants have a fair value of Php 50
each and expire on February 1, 2022. Each warrant entitles the holder to
purchase 10 ordinary shares at Php 40.
500,000 shares were issued for cash, par value Php 15.
Jul. 1,
2021
Nov.
There were 110 share warrants detached from the bonds and exercised.
1,
2021
Dec.
The remaining treasury shares were retired..
1,
2021](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6729c8e9-811f-4a68-968f-0622b877d30b%2Fae094a11-1a84-43cc-a0e3-ed0bddf0fe9c%2Fkzaa3k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:AQUAMARINE Corporation had the following account balances as of December
31,
2020:
8% convertible bonds @face value
Php 2,000,000
Share capital (4,000,000 shares authorized, Php 10 par
1,600,000 shares issued)
1,600,000
Share Premium
4,590,000
Retained Earnings
4,930,000
Treasury Shares at Cost
650,000
Transactions during 2021 and other information relating to the Corporations
liability
and
equity
follows:
were
as
On January 2, 2017, AQUAMARINE Corporation issued Php 2,000,000 of 8%
convertible bonds at par. The maturity of the bond is on January 1, 2021 and
interest is payable annually every January 1. The bond contract entitles the holders
to receive 6. Php 10 par value ordinary shares in exchange for each 100 bonds.
On the date of issue, the prevailing market interest rate for similar debt without the
conversion option is 10%.
PV of Principal
0.6830
3.1699
PFV of Interest
Jan. 1.
2021
The holders of the bonds with a total face value of Php 1,000,000 exercised
the conversion privilege. On that date, the bonds were selling at Php 110
and the ordinary shares at Php 42.
Jan.
The corporation reissued 30,000 of its 50,000 treasury shares for Php 550,000.
The treasury shares had been acquired February 28, 2020.
15,
2021
Feb. 1,
2021
Sold 180, Php 1,000, 9% bonds due February 1, 2031 at Php 103 with one
detachable share warrant attached to each bond. Interest is payable
annually on February 1. The fair value of the bonds without the share
warrants is Php 95. The detachable warrants have a fair value of Php 50
each and expire on February 1, 2022. Each warrant entitles the holder to
purchase 10 ordinary shares at Php 40.
500,000 shares were issued for cash, par value Php 15.
Jul. 1,
2021
Nov.
There were 110 share warrants detached from the bonds and exercised.
1,
2021
Dec.
The remaining treasury shares were retired..
1,
2021
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