ellow corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows: · Preference Share,P40 par, 50,000 shares issued and outstanding- P2,000,000 · Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 · Share Premium-Preference- P300,000 · Share Premium-Ordinary- P600,000 · Retained Earnings- P750,000 Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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yellow corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows:
· Preference Share,P40 par, 50,000 shares issued and outstanding- P2,000,000
· Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000
· Share Premium-Preference- P300,000
· Share Premium-Ordinary- P600,000
· Retained Earnings- P750,000

Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion?

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