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On January 1, 2017, Sydney Inc. issued P 5,000,000 face value, 5-year bonds at 109. Each P1,000 bond was issued with one detachable share warrant, each of which entitled the bondholder to purchase 15 shares of P10 par ordinary share at P20. At issuance date, the market value of each of the bonds without warrant sell at 99. The stated rate on the bonds is 11% payable annually every January 1, starting January 1, 2018. How much from the proceeds is assigned to the equity on the date of issuance? 450,000 4,950,000 500,000 O 50,000

On January 1, 2017, Sydney Inc. issued P 5,000,000 face value, 5-year bonds at 109. Each P1,000 bond was issued with one detachable share warrant, each of which entitled the bondholder to purchase 15 shares of P10 par ordinary share at P20. At issuance date, the market value of each of the bonds without warrant sell at 99. The stated rate on the bonds is 11% payable annually every January 1, starting January 1, 2018. How much from the proceeds is assigned to the equity on the date of issuance? 450,000 4,950,000 500,000 O 50,000

FINANCIAL ACCOUNTING
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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How much from the proceeds is assigned to the equity on the date of issuance?

On January 1, 2017, Sydney Inc. issued P 5,000,000 face value, 5-year bonds at 109. Each P1,000 bond was issued with one detachable share warrant, each of which entitled the bondholder to purchase 15 shares of P10 par ordinary share at P20. At issuance date, the market value of each of the bonds without warrant sell at 99. The stated rate on the bonds is 11% payable annually every January 1, starting January 1, 2018. How much from the proceeds is assigned to the equity on the date of issuance? 450,000 4,950,000 500,000 50,000
Transcribed Image Text:On January 1, 2017, Sydney Inc. issued P 5,000,000 face value, 5-year bonds at 109. Each P1,000 bond was issued with one detachable share warrant, each of which entitled the bondholder to purchase 15 shares of P10 par ordinary share at P20. At issuance date, the market value of each of the bonds without warrant sell at 99. The stated rate on the bonds is 11% payable annually every January 1, starting January 1, 2018. How much from the proceeds is assigned to the equity on the date of issuance? 450,000 4,950,000 500,000 50,000
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