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P5,000,000 of 12% nonconvertible bonds payable at 103 which In addition, each P1,000 bond was issued with 30 detachable purchase, for P50, one ordinary share of Case Company, par warrant was P4. The market value of the bonds eX-warrants At the beginning of current year, Case Company issuei share warrants, each of which entitled the bondholder v, are due in ủve years. purchase, for P50, one ordinary share of Case Company value P25. On the date of issuance, the quoted market value of at the time of issuance is 95. 1. What is the carrying amount of the bonds payable on the date of issuance? a. 5,000,000 b. 4,750,000 c. 5,150,000 d. 4,550,000 2. What amount of the proceeds from the bond issue should be recognized as an increase in shareholders' equity 600,000 b. 300,000 200,000 d. 400,000 a. C. 3. What anmount is credited to share premium if all of the share warrants are exercised? a 4,350,000 b. 3.750,000 4,150,000

P5,000,000 of 12% nonconvertible bonds payable at 103 which In addition, each P1,000 bond was issued with 30 detachable purchase, for P50, one ordinary share of Case Company, par warrant was P4. The market value of the bonds eX-warrants At the beginning of current year, Case Company issuei share warrants, each of which entitled the bondholder v, are due in ủve years. purchase, for P50, one ordinary share of Case Company value P25. On the date of issuance, the quoted market value of at the time of issuance is 95. 1. What is the carrying amount of the bonds payable on the date of issuance? a. 5,000,000 b. 4,750,000 c. 5,150,000 d. 4,550,000 2. What amount of the proceeds from the bond issue should be recognized as an increase in shareholders' equity 600,000 b. 300,000 200,000 d. 400,000 a. C. 3. What anmount is credited to share premium if all of the share warrants are exercised? a 4,350,000 b. 3.750,000 4,150,000

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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share warrants, each of which entitled the bondholder warrant was P4. The market value of the bonds ex-warrants On the date of issuance, the quoted market value of each purchase, for P50, one ordinary share of Case Company, par P5,000,000 of 12% nonconvertible bonds payable at 103 which At the beginning of current year, Case Company i are due in dve years. In addition, each P1,000 bond was i3oued with 30 detacha value P25. On the date of issuance, the quoted market value of warrant was P4. The market value of the bonds ex-warrers at the time of issuance is 95. each 1. What is the carrying amount of the bonds payable on the date of issuance? a. 5,000,000 b. 4,750,000 c. 5,150,000 d. 4,550,000 2 What amount of the proceeds from the bond issue should be recognized as an increase in shareholders' equity a. 600,000 b. 300,000 C. 200,000 d. 400,000 3. What amount is credited to share premium if all of the share warrants are exercised? a. 4,350,000 b. 3.750,000 4,150,000
Transcribed Image Text:share warrants, each of which entitled the bondholder warrant was P4. The market value of the bonds ex-warrants On the date of issuance, the quoted market value of each purchase, for P50, one ordinary share of Case Company, par P5,000,000 of 12% nonconvertible bonds payable at 103 which At the beginning of current year, Case Company i are due in dve years. In addition, each P1,000 bond was i3oued with 30 detacha value P25. On the date of issuance, the quoted market value of warrant was P4. The market value of the bonds ex-warrers at the time of issuance is 95. each 1. What is the carrying amount of the bonds payable on the date of issuance? a. 5,000,000 b. 4,750,000 c. 5,150,000 d. 4,550,000 2 What amount of the proceeds from the bond issue should be recognized as an increase in shareholders' equity a. 600,000 b. 300,000 C. 200,000 d. 400,000 3. What amount is credited to share premium if all of the share warrants are exercised? a. 4,350,000 b. 3.750,000 4,150,000
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