The entity received P7,580,000 cash from the issuance of its 9%, 3-year P8,000,000 par value preference shares. How much is the cost of the preference shares using the following methods?
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REQUIREMENTS:
1. Interpolation method using multiplies of 1%
2. Yield-to-maturity formula
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- Preference Shares, Definite Life with Liquidating Value The entity received P4,500,000 cash from the issuance of its 9%, 10-year P5,000,000 par value preference shares.Additionally assume that these shares have a liquidating value of P5,200,000. How much is the cost of the preference shares using the following methods? 1. Yield-to-maturity formula 2.AB Co issues 5.000 50c shares for $6.000. Required: What are the amounts for share capital and share premium in the statement of financial position?The following information was obtained from the books of Mwangi ltd for the year ended 31st December 2018. Capital structure As 31.12.2018 Ksh Ordinary share capital(par value ksh 30) 4,600,000 8% preference shares (par value ksh 25) 3,400,000 15% debentures stock (issue price ksh 100) 800,000 20% bank loan 2,200,000 Additional information; The market price is as follows Ordinary shares ksh 50 8% preference shares ksh 22 15% debentures ksh 90 The company has maintained a dividend per share of ksh 5 per annum and it is expected to grow in…
- You are given the following information: ordinary shares, P80,000 (P80par); Share Premium-Ordinary, 200,000; and Retained Earnings, P400,000.Assuming only one class of share, the book value per share is? a.P280 b. P680 c. P80 d. P400b) East Company issued 1,000 shares with P5 par to Howe as compensation for services. By what amount should the share premium accoùnt increase as a result 1. Answer the following questions: a) Ivy Company provided the following accounts at year-end: Preference Share Capital, P100 par P5,000,000 Ordinary Share Capital, P10 par Subscribed Preference Share Capital Subscribed Ordinary Share Capital Subscriptions Receivable - Ordinary Subscriptions Receivable -Preference Share Premium – Preference Share Share Premium – Ordinary Share 2,000,000 1,800,000 1,000,000 180,000 190,000 300,000 220.000 680,000 Treasury Share - Preference (700 shares at cost) Share Premium - Preference Treasury Share 850,000 Retained Earnings 2,000,000 How much is total shareholders' equity at yearend? b) East Company issued 1,000 shares with P5 par to Howe as compensation fo. 1.000 hours of legal services performed. Howe bills P160 per hour for his loet services. By what amount should the share premium accoùnt…Please answer this problem and provide complete solution in good accounting form. Thank you! Victory Company issued 8,000 ordinary shares with P200 par value and 20,000 preference shares with P200 par value for a total consideration of P7,500,000. At the date of issue, the ordinary share was selling for P360 and the preference share was selling for P270. What is the share premium from the issuance of ordinary shares?
- Item No. 2 is based on the following information: Virma Corporation sold to a subscriber 500 shares of its P 30 par value ordinary shares at P 32 per share receiving a 30% down payment. 2. In recording this transaction: a. Ordinary Share Capital will be credited in the amount of P 15,000. Ordinary Share Capital will be credited in the amount of P 16,000. b. c. Ordinary Share Premium will be credited in the amount of P 4,500. d. Subscribed Ordinary Share Capital will be credited in the amount of P 15,000.What is the par value per share? * Mars Corporation recorded the following joumal entry: Land Preference share capital Share premium-preference To record issuance of preference shores @120 Per share. 450,000 420,000 30,000The company issued for P1,200,000 cash, 4,000 shares of P200 par value Preference share and 1,000 shares of P100 ordinary share. The preference and ordinary share have fair values of P220 and P120 per share, respectively on the date of sale. Record the transaction above in journal entry form.
- The company issued for P1,000,000 cash, 1,000 shares of P200 par value Preference share and 2,000 shares of P100 ordinary share. The preference share has a fair value of P240 on the date of sale. No fair value available for the ordinary share. How much is credited to Share Premium – Ordinary Shares?The shareholders’ equity section of THANOS Company revealed the following information on December 31, 2021: Preference share, ₱100 par,₱2,300,000; share premium-preference, ₱805,000; ordinary share,₱15 par, ₱5,250,000; share premium-ordinary, ₱2,750,000; subscribed ordinary share,₱50,000; Accumulated profits and losses,₱1,900,000; and stock dividends payable-ordinary, ₱450,000. How much is legal capital? a. ₱ 5,750,000 b. ₱ 8,050,000 c. ₱ 8,000,000 d. ₱ 7,600,000Pat Company reported the following information on December 31, 2020. Determine the legal capital: * P230 000 80 500 525.000 275,000 5.000 Preference Share, P100 par Share Premium - Preference Ordinary Share, P15 par Share Premium- Ordinary Subscribed Ordinary Share Retained Earnings Notes Payable Subscription receivable- Ordinary 190,000 400,000 40,000 Your answer This is a required question