On May 1, 2020, Manny Company issued P2 million, 20-year, 10% bonds for P2,120,000. Each P1,000 bond had a detachable warrant eligible for the purchase of one share of Manny's P50 par ordinary share for P60. Immediately after the bonds were issued, Manny's securities had the following unit fair values:
On May 1, 2020, Manny Company issued P2 million, 20-year, 10% bonds for P2,120,000. Each P1,000 bond had a detachable warrant eligible for the purchase of one share of Manny's P50 par ordinary share for P60. Immediately after the bonds were issued, Manny's securities had the following unit fair values:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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other info is on the second pic
Transcribed Image Text:MC33 On May 1, 2020, Manny Company issued P2 million, 20-year,
10% bonds for P2,120,000. Each P1,000 bond had a detachable
warrant eligible for the purchase of one share of Manny's P50
par ordinary share for P60. Immediately after the bonds were
issued, Manny's securities had the following unit fair values:
Transcribed Image Text:P1,040
20
10% Bond without warrant
56
Warrant
What amount should Manny credit to premium on bonds
payable on May 1, 2020?
Ordinary Share, P50 par
P120,000
P 80,000
P 40,000
РО
a.
b.
с.
d.
lighility section of Texas Company's
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