McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances Preference share capital, P20 par Ordinary share capital, P5 par Share premium - preference Share premium- ordinary Retained earnings P 2,000,000 8,000,000 5,000,000 12,000,000 10,000,000 The following transactions occurred in 2021: January 31 Issued 100,000 preference shares at P25 per share Issued 200,000 ordinary shares, receiving 1,600,000 Issued 50,000 preference shares and 125,000 ordinary shares, receiving P3,600,000. The fair value of each preference share and each ordinary share on this date was P3 and P20, respectively. 10,000 preference share capital were converted into 20,000 ordinary shares. These shares were originally issued at P27 per share. Issued P10,000,000, five-year, 12% convertible bonds at 103. Without the conversio option, the bonds would be sold at par. Each P1,000 bond is convertible into 150 ordinary shares. Issued P5,000,000, 10-year, 10% bonds and 50,000 warrants for a total consideratio of P5,200,000. The fair value of the bonds on this date was 98. Each warrant allows the holder to purchase 10 ordinary shares at P12 per share. Received a unit of equipment and a set of furniture and fixtures by issuing 20,000 preference shares. The fair values of the equipment and the furniture on this date were P700,000 and P300,000, respectively. McAllister's preference shares have a fai value of P32 on this date A shareholder donated 100,000 ordinary shares, when the shares were trading at P22. The shares were sold by McAllister the next day at P25 per share 40% of the bonds issued on June 30 were converted into shares March 31 April 30 June 30 August 31 September 30 October 31 November 30 30,000 warrants were exercised Net income during the year was P2,000,000 December 31
McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances Preference share capital, P20 par Ordinary share capital, P5 par Share premium - preference Share premium- ordinary Retained earnings P 2,000,000 8,000,000 5,000,000 12,000,000 10,000,000 The following transactions occurred in 2021: January 31 Issued 100,000 preference shares at P25 per share Issued 200,000 ordinary shares, receiving 1,600,000 Issued 50,000 preference shares and 125,000 ordinary shares, receiving P3,600,000. The fair value of each preference share and each ordinary share on this date was P3 and P20, respectively. 10,000 preference share capital were converted into 20,000 ordinary shares. These shares were originally issued at P27 per share. Issued P10,000,000, five-year, 12% convertible bonds at 103. Without the conversio option, the bonds would be sold at par. Each P1,000 bond is convertible into 150 ordinary shares. Issued P5,000,000, 10-year, 10% bonds and 50,000 warrants for a total consideratio of P5,200,000. The fair value of the bonds on this date was 98. Each warrant allows the holder to purchase 10 ordinary shares at P12 per share. Received a unit of equipment and a set of furniture and fixtures by issuing 20,000 preference shares. The fair values of the equipment and the furniture on this date were P700,000 and P300,000, respectively. McAllister's preference shares have a fai value of P32 on this date A shareholder donated 100,000 ordinary shares, when the shares were trading at P22. The shares were sold by McAllister the next day at P25 per share 40% of the bonds issued on June 30 were converted into shares March 31 April 30 June 30 August 31 September 30 October 31 November 30 30,000 warrants were exercised Net income during the year was P2,000,000 December 31
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances:
Preference share capital, P20 par
Ordinary share capital, P5 par
Share premium- preference
Share premium - ordinary
Retained earnings
P 2,000,000
8,000,000
5,000,000
12,000,000
10,000,000
The following transactions occurred in 2021:
Issued 100,000 preference shares at P25 per share
Issued 200,000 ordinary shares, receiving 1,600,000
Issued 50,000 preference shares and 125,000 ordinary shares, receiving P3,600,000.
The fair value of each preference share and each ordinary share on this date was P30
and P20, respectively.
10,000 preference share capital were converted into 20,000 ordinary shares. These
shares were originally issued at P27 per share.
Issued P10,000,000, five-year, 12% convertible bonds at 103. Without the conversion
option, the bonds would be sold at par. Each P1,000 bond is convertible into 150
ordinary shares.
Issued P5,000,000, 10-year, 10% bonds and 50,000 warrants for a total consideration
of P5,200,000. The fair value of the bonds on this date was 98. Each warrant allows
January 31
March 31
April 30
June 30
August 31
the holder to purchase 10 ordinary shares at P12 per share.
Received a unit of equipment and a set of furniture and fixtures by issuing 20,000
preference shares. The fair values of the equipment and the furniture on this date
were P700,000 and P300,000, respectively. McAllister's preference shares have a fair
value of P32 on this date
A shareholder donated 100,000 ordinary shares, when the shares were trading at
P22. The shares were sold by McAllister the next day at P25 per share
September 30
October 31
November 30
40% of the bonds issued on June 30 were converted into shares
30,000 warrants were exercised
December 31
Net income during the year was P2,000,000
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