Sariling Sikap Corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows: · Preference Share,P40 par, 50,000 shares issued and outstanding- P2,000,000 · Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 · Share Premium-Preference- P300,000 · Share Premium-Ordinary- P600,000 · Retained Earnings- P750,000 Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion? P630,000 P112,500 P120,000 P0
Sariling Sikap Corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows: · Preference Share,P40 par, 50,000 shares issued and outstanding- P2,000,000 · Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000 · Share Premium-Preference- P300,000 · Share Premium-Ordinary- P600,000 · Retained Earnings- P750,000 Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion? P630,000 P112,500 P120,000 P0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sariling Sikap Corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information at January 31, 2021 is as follows:
·Preference Share ,P40 par, 50,000 shares issued and outstanding- P2,000,000
· Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000
· Share Premium-Preference- P300,000
· Share Premium-Ordinary- P600,000
·Retained Earnings - P750,000
Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion?
·
· Ordinary Share Capital, P50 par, 80,000 shares issued and outstanding- P4,000,000
· Share Premium-Preference- P300,000
· Share Premium-Ordinary- P600,000
·
Assuming a 30,000 preference shares was converted, how much will be charged to Retained Earnings as a result of conversion?
P630,000
P112,500
P120,000
P0
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