Emily Rose Company showed the following data: Preference share capital, par value P20, 100,000 shares authorized, 50,000 shares 1,000,000 issued Ordinary share capital, par value P10, 200,000 shares authorized, 100,000 shares 1,000,000 issued Retained earnings 2,000,000 Market value of share on date of declaration Preference share 30 Ordinary share 15 In view of the ratio of new shares to old shares, it is necessary that fractional share warrants be issued to various shareholders calling for 3,000 shares. Only 90% of the warrants are turned in and the remainder lapsed.
Emily Rose Company showed the following data: Preference share capital, par value P20, 100,000 shares authorized, 50,000 shares 1,000,000 issued Ordinary share capital, par value P10, 200,000 shares authorized, 100,000 shares 1,000,000 issued Retained earnings 2,000,000 Market value of share on date of declaration Preference share 30 Ordinary share 15 In view of the ratio of new shares to old shares, it is necessary that fractional share warrants be issued to various shareholders calling for 3,000 shares. Only 90% of the warrants are turned in and the remainder lapsed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Question
How much is credited to Share Premium when some of the fractional share warrants outstanding lapsed?
Transcribed Image Text:Emily Rose Company showed the following data:
Preference share capital, par value P20, 100,000 shares authorized, 50,000 shares
1,000,000
issued
Ordinary share capital, par value P10, 200,000 shares authorized, 100,000 shares
1,000,000
issued
Retained earnings
2,000,000
Market value of share on date of declaration
Preference share
30
Ordinary share
15
In view of the ratio of new shares to old shares, it is necessary that fractional share warrants be issued to
various shareholders calling for 3,000 shares. Only 90% of the warrants are turned in and the remainder
lapsed.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education