E. Company A has P3,000,000 million issue of cumulative preference share comprising of 100,000 shares each carrying 3 dividend per annum. The company eamed a profit of P200,000 in Year 1 and P500,000 in year 2. Company A converts the 100,000 preference shares to P10- par ordinary shares on 2-for-1 basis, prepare the journal entry to record the transaction.

E. Company A has P3,000,000 million issue of cumulative preference share comprising of 100,000 shares each carrying 3 dividend per annum. The company eamed a profit of P200,000 in Year 1 and P500,000 in year 2. Company A converts the 100,000 preference shares to P10- par ordinary shares on 2-for-1 basis, prepare the journal entry to record the transaction.

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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