AAA Company issued 200,000 shares at P100 par, 10% cumulative preference shares for P25,000,000. One detachable warrant was attached to each preference share issued. Each warrant gives the holder the right to purchase one ordinary share, P50 par value for P65. There was no fair value of the preference share ex-warrants and warrants, however, the fair value of ordinary shares at the date of issuance was P75. Subsequently, 70% of the warrants are exercised. a. At the date of issuance, the amount to be credited to share warrants outstanding will be? b. At the date of issuance, the amount to be credited to share premium – preference share will be? c. At the date of exercise, the amount to be credited to share premium – ordinary shares due to issuance will be?
AAA Company issued 200,000 shares at P100 par, 10% cumulative preference shares for P25,000,000. One detachable warrant was attached to each
a. At the date of issuance, the amount to be credited to share warrants outstanding will be?
b. At the date of issuance, the amount to be credited to share premium – preference share will be?
c. At the date of exercise, the amount to be credited to share premium – ordinary shares due to issuance will be?
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