Each share of preference is convertible into 1 ordinary share. In June, ABC converted 4,000 of preference shares into ordinary shares. 1.) The entry to take up the conversion includes a credit to: Group of answer choices Preference share for P80,000 Ordinary share for P80,000 Share premium for P60,000 Accumulated profit for P60,000 2.) Assuming that each share of preference is convertible into 4 ordinary shares and ABC converted 4,000 preference shares into ordinary, the entry to take up conversion includes a debit to Group of answer choices Preference share for P160,000 Ordinary share for P160,000 Accumulated profit for P60,000 Accumulated profit for P80,000
Each share of preference is convertible into 1 ordinary share. In June, ABC converted 4,000 of preference shares into ordinary shares. 1.) The entry to take up the conversion includes a credit to: Group of answer choices Preference share for P80,000 Ordinary share for P80,000 Share premium for P60,000 Accumulated profit for P60,000 2.) Assuming that each share of preference is convertible into 4 ordinary shares and ABC converted 4,000 preference shares into ordinary, the entry to take up conversion includes a debit to Group of answer choices Preference share for P160,000 Ordinary share for P160,000 Accumulated profit for P60,000 Accumulated profit for P80,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The
|
|
1,200,000 |
|
Share premium in excess of par – preference share |
300,000 |
|
Ordinary share, P10 par, 300,000 shares issued and outstanding |
3,000,000 |
|
Share premium in excess of par – ordinary share |
600,000 |
|
|
2,500,000 |
Each share of preference is convertible into 1 ordinary share. In June, ABC converted 4,000 of preference shares into ordinary shares.
1.)
- The entry to take up the conversion includes a credit to:
Group of answer choices
Preference share for P80,000
Ordinary share for P80,000
Share premium for P60,000
Accumulated profit for P60,000
2.)
- Assuming that each share of preference is convertible into 4 ordinary shares and ABC converted 4,000 preference shares into ordinary, the entry to take up conversion includes a debit to
Group of answer choices
Preference share for P160,000
Ordinary share for P160,000
Accumulated profit for P60,000
Accumulated profit for P80,000
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