On July 1, 2021, VISION Company issued rights to shareholders to subscribe to additional shares of its ordinary share capital. One right was issued for each share owned. A shareholder could purchase one additional share for five rights plus ₱150 cash. The rights expire on September 30, 2021. On July 1, 2021, the market price of a share with the right attached was ₱200, while the market price of the right alone was ₱15. The equity on June 30, 2021 comprised the following: Ordinary share capital, ₱100 par, 50,000 shares issued and outstanding - ₱5,000,000; Share premium - ₱1,000,000; Retained earnings - ₱2,000,000. What is the total contributed capital assuming all share rights are exercised by the shareholders?
On July 1, 2021, VISION Company issued rights to shareholders to subscribe to additional shares of its ordinary share capital. One right was issued for each share owned. A shareholder could purchase one additional share for five rights plus ₱150 cash. The rights expire on September 30, 2021. On July 1, 2021, the market price of a share with the right attached was ₱200, while the market price of the right alone was ₱15. The equity on June 30, 2021 comprised the following: Ordinary share capital, ₱100 par, 50,000 shares issued and outstanding - ₱5,000,000; Share premium - ₱1,000,000; Retained earnings - ₱2,000,000. What is the total contributed capital assuming all share rights are exercised by the shareholders?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On July 1, 2021, VISION Company issued rights to shareholders to subscribe to additional shares of its ordinary share capital. One right was issued for each share owned. A shareholder could purchase one additional share for five rights plus ₱150 cash. The rights expire on September 30, 2021. On July 1, 2021, the market price of a share with the right attached was ₱200, while the market price of the right alone was ₱15. The equity on June 30, 2021 comprised the following: Ordinary share capital, ₱100 par, 50,000 shares issued and outstanding - ₱5,000,000; Share premium - ₱1,000,000;
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education