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On January 1, 2019, Yellow Company issued its P3,000,000, 8%, 5-year bonds that resulted in a bond conversion privilege of P100,000. The bonds are convertible to 20,000 ordinary shares with a par value of P100 per share.                On April 1, 2021,P1,200,000 bonds were converted to ordinary shares when the ordinary shares sell for P125 per share. The conversion of the bonds to ordinary shares shall result to a net increase in share premium by:    P363,896 P367,993                                                         P327,993 P323,896

On January 1, 2019, Yellow Company issued its P3,000,000, 8%, 5-year bonds that resulted in a bond conversion privilege of P100,000. The bonds are convertible to 20,000 ordinary shares with a par value of P100 per share.                On April 1, 2021,P1,200,000 bonds were converted to ordinary shares when the ordinary shares sell for P125 per share. The conversion of the bonds to ordinary shares shall result to a net increase in share premium by:    P363,896 P367,993                                                         P327,993 P323,896

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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On January 1, 2019, Yellow Company issued its P3,000,000, 8%, 5-year bonds that resulted in a bond conversion privilege of P100,000. The bonds are convertible to 20,000 ordinary shares with a par value of P100 per share.             
 
On April 1, 2021,P1,200,000 bonds were converted to ordinary shares when the ordinary shares sell for P125 per share.
The conversion of the bonds to ordinary shares shall result to a net increase in share premium by: 
 
P363,896
P367,993                                                        
P327,993
P323,896
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