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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:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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: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:
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
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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