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Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Sand Company provided the following data at current year-end: Preference share capital, P100 par, 50,000 shares Share premium - PS Ordinary share capital, P50 par, 100,000 shares Share premium - ordinary share Retained earnings 20 Required: 1. Prepare journal entry assuming that 5,000 preference shares are converted: 5,000,000 500,000 5,000,000 1,000,000 2,000,000 a. Preference shares are convertible into ordinary shares on a share-for-share basis. b. Each preference share is convertible into 4 ordinary shares. a. b. 2. Prepare journal entry assuming 8,000 preference shares are callable and called in for payment at: 150 95
Transcribed Image Text:Sand Company provided the following data at current year-end: Preference share capital, P100 par, 50,000 shares Share premium - PS Ordinary share capital, P50 par, 100,000 shares Share premium - ordinary share Retained earnings 20 Required: 1. Prepare journal entry assuming that 5,000 preference shares are converted: 5,000,000 500,000 5,000,000 1,000,000 2,000,000 a. Preference shares are convertible into ordinary shares on a share-for-share basis. b. Each preference share is convertible into 4 ordinary shares. a. b. 2. Prepare journal entry assuming 8,000 preference shares are callable and called in for payment at: 150 95
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