The shareholders' equity section of the statement of financial position of ABC Co. contains the following: Ordinary share capital, P10 par, 5,000,000 shares P30,000,000 Ordinary share premium 3,000,000 10% Preference share capital, P70 par, 500.000 shares 10,500,000 Preference shares premium 6,000,000 Retained Earnings 7,500,000 On November 15, 2022, 55,000 preference shares were converted to 8 ordinary shares per preference share. On November 15, 2022, there was an entry on A.Retained Earnings -1,650,000 B.Paid-In Capital -Conversion of Preference into Ordinary Shares-1,650,000 C.Paid in Capital from Donated Shares-1,650,000 D.Paid in Capital from Retirement of Preference Share-1,650,000 E.Paid in Capital from Sale of Treasury Share-1,650,000
The shareholders' equity section of the statement of financial position of ABC Co. contains the following: Ordinary share capital, P10 par, 5,000,000 shares P30,000,000 Ordinary share premium 3,000,000 10% Preference share capital, P70 par, 500.000 shares 10,500,000 Preference shares premium 6,000,000 Retained Earnings 7,500,000 On November 15, 2022, 55,000 preference shares were converted to 8 ordinary shares per preference share. On November 15, 2022, there was an entry on A.Retained Earnings -1,650,000 B.Paid-In Capital -Conversion of Preference into Ordinary Shares-1,650,000 C.Paid in Capital from Donated Shares-1,650,000 D.Paid in Capital from Retirement of Preference Share-1,650,000 E.Paid in Capital from Sale of Treasury Share-1,650,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The shareholders' equity section of the
Ordinary share capital, P10 par, 5,000,000 shares P30,000,000
Ordinary share premium 3,000,000
10%
Preference shares premium 6,000,000
On November 15, 2022, 55,000 preference shares were converted to 8 ordinary shares per preference share. On November 15, 2022, there was an entry on
A.Retained Earnings -1,650,000
B.Paid-In Capital -Conversion of Preference into Ordinary Shares-1,650,000
C.Paid in Capital from Donated Shares-1,650,000
D.Paid in Capital from Retirement of Preference Share-1,650,000
E.Paid in Capital from Sale of Treasury Share-1,650,000
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