Atimonan Company issued 8,000 of its 8%, 10-year P1,000 face value bonds with detachable share warrants at 120. Each bond carried a detachable warrant for two shares of Atimonan's P100 par value ordinary shares at a specified option price of P150. Immediately after issuance, the market value of the bonds ex-warrants was P8,100,000 and the market value of the warrants was P900,000. The issuance of the bonds increased Atimonan's equity by Atimonan Company issued 8,000 of its 8%, 10-year P1,000 face value bonds withdetachable share warrants at 120. Each bond carried a detachable warrant for twoshares of Atimonan's P100 par value ordinary shares at a specified option price ofP150. Immediately after issuance, the market value of the bonds ex-warrants wasP8,100,000 and the market value of the warrants was P900,000. The issuance of thebonds increased Atimonan's equity by

Given: Atimonan Company issued= 8,000 face value bonds=p 1000 bonds ex-warrants = P8,100,000 market…

Business

Accounting

ed

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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