During 2021, Lamb Company issued 10,000 shares of P100 par value convertible preference share for P110 per share. One preference share can be converted into 3 shares of Lamb’s P25 par ordinary share at the option of the preference shareholder. On December 31, 2021, when the market value of the ordinary share was P40, the entire preference share was converted. How much should Lamb credit to Share premium as a result of the conversion?
During 2021, Lamb Company issued 10,000 shares of P100 par value convertible preference share for P110 per share. One preference share can be converted into 3 shares of Lamb’s P25 par ordinary share at the option of the preference shareholder. On December 31, 2021, when the market value of the ordinary share was P40, the entire preference share was converted. How much should Lamb credit to Share premium as a result of the conversion?
During 2021, Lamb Company issued 10,000 shares of P100 par value convertible preference share for P110 per share. One preference share can be converted into 3 shares of Lamb’s P25 par ordinary share at the option of the preference shareholder. On December 31, 2021, when the market value of the ordinary share was P40, the entire preference share was converted. How much should Lamb credit to Share premium as a result of the conversion?
During 2021, Lamb Company issued 10,000 shares of P100 par value convertible preference share for P110 per share. One preference share can be converted into 3 shares of Lamb’s P25 par ordinary share at the option of the preference shareholder. On December 31, 2021, when the market value of the ordinary share was P40, the entire preference share was converted. How much should Lamb credit to Share premium as a result of the conversion?
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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