During 2019, ABC Co. issued 10,000 shares of P100 par value convertible preference shares for P110 per share. One preference share can be converted into three shares of ABC Co.’s P25 par ordinary share at the option of preference shareholder. On December 31, 2019, when the market value of the ordinary share was P40, the entire preference share was converted. How much should ABC Co. credit to share premium as a result of the conversion? * P0 P100,000 P350,000 P450,000 answer not given
During 2019, ABC Co. issued 10,000 shares of P100 par value convertible preference shares for P110 per share. One preference share can be converted into three shares of ABC Co.’s P25 par ordinary share at the option of preference shareholder. On December 31, 2019, when the market value of the ordinary share was P40, the entire preference share was converted. How much should ABC Co. credit to share premium as a result of the conversion? * P0 P100,000 P350,000 P450,000 answer not given
During 2019, ABC Co. issued 10,000 shares of P100 par value convertible preference shares for P110 per share. One preference share can be converted into three shares of ABC Co.’s P25 par ordinary share at the option of preference shareholder. On December 31, 2019, when the market value of the ordinary share was P40, the entire preference share was converted. How much should ABC Co. credit to share premium as a result of the conversion? * P0 P100,000 P350,000 P450,000 answer not given
During 2019, ABC Co. issued 10,000 shares of P100 par value convertible preference shares for P110 per share. One preference share can be converted into three shares of ABC Co.’s P25 par ordinary share at the option of preference shareholder. On December 31, 2019, when the market value of the ordinary share was P40, the entire preference share was converted. How much should ABC Co. credit to share premium as a result of the conversion? *
P0
P100,000
P350,000
P450,000
answer not given
Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.
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