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ponds maturing on December 31, 2022. Interest is payable annually on December 31. Each P1,000 bond is convertible into 60 shares of Buffalo Wings Co.'s P10 par ordinary shares. The unamortized premium balance from Bond Conversion Privilege is P640,000. On this date, an ndividual holding 2.000 of the bonds exercised the conversion privilege when the market va of Buffalo Wings Co.'s ordinary share was P18. What is the amount credited to share premium upon conversion of the bonds? * O P1,790,000 O P800,000 O None O P899,000

ponds maturing on December 31, 2022. Interest is payable annually on December 31. Each P1,000 bond is convertible into 60 shares of Buffalo Wings Co.'s P10 par ordinary shares. The unamortized premium balance from Bond Conversion Privilege is P640,000. On this date, an ndividual holding 2.000 of the bonds exercised the conversion privilege when the market va of Buffalo Wings Co.'s ordinary share was P18. What is the amount credited to share premium upon conversion of the bonds? * O P1,790,000 O P800,000 O None O P899,000

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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On December 31, 2019, Buffalo Wings Co. had outstanding P20 million face value convertible bonds maturing on December 31, 2022. Interest is payable annually on December 31. Each P1,000 bond is convertible into 60 shares of Buffalo Wings Co.'s P10 par ordinary shares. The unamortized premium balance from Bond Conversion Privilege is P640,000. On this date, an individual holding 2,000 of the bonds exercised the conversion privilege when the market value of Buffalo Wings Co.'s ordinary share was P18. What is the amount credited to share premium upon conversion of the bonds? * O P1,790,000 O P800,000 O None O P899,000
Transcribed Image Text:On December 31, 2019, Buffalo Wings Co. had outstanding P20 million face value convertible bonds maturing on December 31, 2022. Interest is payable annually on December 31. Each P1,000 bond is convertible into 60 shares of Buffalo Wings Co.'s P10 par ordinary shares. The unamortized premium balance from Bond Conversion Privilege is P640,000. On this date, an individual holding 2,000 of the bonds exercised the conversion privilege when the market value of Buffalo Wings Co.'s ordinary share was P18. What is the amount credited to share premium upon conversion of the bonds? * O P1,790,000 O P800,000 O None O P899,000
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