In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value convertible preference share capital. One preference share can be converted into three ordinary shares of Eden’s P30 par value at the option of the shareholder. In August 2020, all of the preference shares were converted into ordinary shares. The market value of the ordinary share on the date of conversion was P60 per share. What amount will be credited to share premium?
In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value convertible preference share capital. One preference share can be converted into three ordinary shares of Eden’s P30 par value at the option of the shareholder. In August 2020, all of the preference shares were converted into ordinary shares. The market value of the ordinary share on the date of conversion was P60 per share. What amount will be credited to share premium?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
#18
In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value
convertible
ordinary shares of Eden’s P30 par value at the option of the shareholder. In August 2020, all of
the preference shares were converted into ordinary shares. The market value of the ordinary
share on the date of conversion was P60 per share. What amount will be credited to share
premium? 2,880,000 pls provide correct solution for the given answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 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