California, Inc. had outstanding 10%, P1 million face value, convertible bonds maturing on December 31, 2022 on which interest is paid June 30 and December 31. After amortization through June 30, 2020, the unamortized balance in the bond discount account was P30,000. premium from bond conversion privilege had a balance of P50,000. On that date, all of these bonds were converted into 40,000 ordinary shares with P20 par value. At that time, each share of California ordinary share capital sells for P23. California incurred expenses of P10,000 in connection with the conversion. The share The conversion of the bonds to ordinary shares shall result to an increase in share premium by P160,000 P170,000 P180,000 P210,000 a. b. с. d. Use the same information given in MC38. conversion in accordance with current financial reporting standards, California should record gain on conversion of Recording the P60,000 P50,000 P40,000 PO a. b. с. d.

California, Inc. had outstanding 10%, P1 million face value, convertible bonds maturing on December 31, 2022 on which interest is paid June 30 and December 31. After amortization through June 30, 2020, the unamortized balance in the bond discount account was P30,000. premium from bond conversion privilege had a balance of P50,000. On that date, all of these bonds were converted into 40,000 ordinary shares with P20 par value. At that time, each share of California ordinary share capital sells for P23. California incurred expenses of P10,000 in connection with the conversion. The share The conversion of the bonds to ordinary shares shall result to an increase in share premium by P160,000 P170,000 P180,000 P210,000 a. b. с. d. Use the same information given in MC38. conversion in accordance with current financial reporting standards, California should record gain on conversion of Recording the P60,000 P50,000 P40,000 PO a. b. с. d.

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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