EXERCISE 6 The Conception Enterprises, Inc. had the following shareholder's equity balances at December 31,2020: Preference Share Capital, P 20 par, 100, 000 shares authorized P 2,000,000 Ordinary Share Capital, P 30 par, 100, 000 shares authorized P 1,800,000 Share Premium- Preference Share 160,000 Share Premium- Ordinary Share 250,000 Retained Earnings 800,000 The preference share is convertible into ordinary share. REQUIRED: Journalize the conversion of 10,000 preference shares under each of the following independent assumptions: a.) Preference share is convertible into ordinary shares on a share basis. b.) 2 shares of preference are convertible into one ordinary share.
EXERCISE 6 The Conception Enterprises, Inc. had the following shareholder's equity balances at December 31,2020: Preference Share Capital, P 20 par, 100, 000 shares authorized P 2,000,000 Ordinary Share Capital, P 30 par, 100, 000 shares authorized P 1,800,000 Share Premium- Preference Share 160,000 Share Premium- Ordinary Share 250,000 Retained Earnings 800,000 The preference share is convertible into ordinary share. REQUIRED: Journalize the conversion of 10,000 preference shares under each of the following independent assumptions: a.) Preference share is convertible into ordinary shares on a share basis. b.) 2 shares of preference are convertible into one ordinary share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:EXERCISE 6
The Conception Enterprises, Inc. had the following shareholder's equity balances at December 31,2020:
Preference Share Capital, P 20 par, 100, 000 shares authorized
P 2,000,000
Ordinary Share Capital, P 30 par, 100, 000 shares authorized
P 1,800,000
Share Premium- Preference Share
160,000
Share Premium- Ordinary Share
250,000
Retained Earnings
800,000
The preference share is convertible into ordinary share.
REQUIRED:
Journalize the conversion of 10,000 preference shares under each of the following independent assumptions:
a.) Preference share is convertible into ordinary shares on a share basis.
b.) 2 shares of preference are convertible into one ordinary share.
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