Moriones Company issued P5,000,000 face amount 12% 5-year convertible bonds at 110 at the beginning of current year, paying interest semiannually on January 1 and July 1. It is estimated that the bonds would sell only at 103 without the conversion feature. Each P1,000 bond is convertible into 10 ordinary shares with P100 par value. 1. What is the increase in shareholders' equity arising from the original issuance of the convertible bonds? A. 350,000 B. 500,000 C. 150,000 D. 0

Moriones Company issued P5,000,000 face amount 12% 5-year convertible bonds at 110 at the beginning of current year, paying interest semiannually on January 1 and July 1. It is estimated that the bonds would sell only at 103 without the conversion feature. Each P1,000 bond is convertible into 10 ordinary shares with P100 par value. 1. What is the increase in shareholders' equity arising from the original issuance of the convertible bonds? A. 350,000 B. 500,000 C. 150,000 D. 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 16
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