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Sand Company provided the following data at current year-end: Preference share capital, P100 par, 50,000 shares Share premium - PS Ordinary share capital, P50 par, 100,000 shares Share premium - ordinary share Retained earnings 747 5,000,000 550,000 5,000,000 1,000,000 2,000,000

Sand Company provided the following data at current year-end: Preference share capital, P100 par, 50,000 shares Share premium - PS Ordinary share capital, P50 par, 100,000 shares Share premium - ordinary share Retained earnings 747 5,000,000 550,000 5,000,000 1,000,000 2,000,000

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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Sand Company provided the following data at current year-end: Preference share capital, P100 par, 50,000 shares Share premium - PS Ordinary share capital, P50 par, 100,000 shares Share premium - ordinary share Retained earnings Required: 1. Prepare journal entry assuming that 6,300 preference shares are converted: 5,000,000 550,000 5,000,000 1,000,000 2,000,000 a. Preference shares are convertible into ordinary shares on a share-for-share basis. b. Each preference share is convertible into 4 ordinary shares. 2. Prepare journal entry assuming 8,000 preference shares are callable and called in for payment at: a. b. 150 95
Transcribed Image Text:Sand Company provided the following data at current year-end: Preference share capital, P100 par, 50,000 shares Share premium - PS Ordinary share capital, P50 par, 100,000 shares Share premium - ordinary share Retained earnings Required: 1. Prepare journal entry assuming that 6,300 preference shares are converted: 5,000,000 550,000 5,000,000 1,000,000 2,000,000 a. Preference shares are convertible into ordinary shares on a share-for-share basis. b. Each preference share is convertible into 4 ordinary shares. 2. Prepare journal entry assuming 8,000 preference shares are callable and called in for payment at: a. b. 150 95
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