On July 1, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of 115. The bonds carried an 11% interest payable every June 30 for five years. Each bond carried share warrants to purchase ten ordinary shares with a par value of P50 for P65. The effective rate of interest of the bonds ex-warrants is 8%. Sixty percent of the share warrants were exercised during 2021. 19.How much is the interest expense during 2021? 20.How much is the Share Premium arising from the exercise of share warrants?
On July 1, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of 115. The bonds carried an 11% interest payable every June 30 for five years. Each bond carried share warrants to purchase ten ordinary shares with a par value of P50 for P65. The effective rate of interest of the bonds ex-warrants is 8%. Sixty percent of the share warrants were exercised during 2021. 19.How much is the interest expense during 2021? 20.How much is the Share Premium arising from the exercise of share warrants?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On July 1, 2020, Berry Company issued 5,000 P1,000 bonds with share warrants at its fair value of 115. The bonds carried an 11% interest payable every June 30 for five years. Each bond carried share warrants to purchase ten ordinary shares with a par value of P50 for P65. The effective rate of interest of the bonds ex-warrants is 8%. Sixty percent of the share warrants were exercised during 2021.
19.How much is the interest expense during 2021?
20.How much is the Share Premium arising from the exercise of share warrants?
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