Problem 8 Problem 20-8 (IAA)Sand Company provided the following data at eurrentyear-end:Preference share capital, P100 par. 50.000 aharesShare premium - PSOelinary ahare capital, P50 par, 100.000 shareShare premiom-ondinary ahareRetained earnings3.000,000500,000.000,0001,000,0003.000.000Required:1. Prepare journal entry aseuming that 5,000 preferenceshares are converted:n. Preference shares are convertible into ordinarynhares on a share-for-ahare basisb Esch preferenoe share is convertible into 4 ordinaryshares.2. Prepare journal entry asuming 6,000 preference sharesare callable and called in for payment at:A 120b. 80

The capital structure of the company is divided into two shares; preference and common or ordinary…

Sand Company provided the following dats at eurrent year-end Pelerence share caital. Po par. 000 ha Share premium-P Ondinary share capital P0 par, 100.000 share Share prei -anlinary ahare atained earnings 4.000.000 500.00 .000.000 1000.00e 2000.000 Required: L Prepare journal entry ming that 4,000 preference shares are converted a Preference shares are convertible inte ordinary shares on a ahare-dor-ahare hasin Each preference share is convertible into 4 ordinary sharee 2 Prepare journal entry aming S.000 preference shares are callable and called in for payment at 120 60