VIOLET Company issued 7,000 convertible preference shares with ₱100 par value at ₱105 per share. One preference share can be converted into four ordinary shares with ₱20 par value at the option of the shareholder. Subsequently, all of the preference shares were converted into ordinary shares. The market value of the ordinary share on the date of conversion was ₱25. What amount should be credited to share premium - ordinary shares as a result of the subsequent conversion into ordinary shares of the issued preference shares? * ₱ 595,000 ₱ 35,000 ₱ 140,000 ₱ 175,000 THE ANSWER IS 175,000 PLEASE SHOW ME HOW.
VIOLET Company issued 7,000 convertible preference shares with ₱100 par value at ₱105 per share. One preference share can be converted into four ordinary shares with ₱20 par value at the option of the shareholder. Subsequently, all of the preference shares were converted into ordinary shares. The market value of the ordinary share on the date of conversion was ₱25. What amount should be credited to share premium - ordinary shares as a result of the subsequent conversion into ordinary shares of the issued preference shares? * ₱ 595,000 ₱ 35,000 ₱ 140,000 ₱ 175,000 THE ANSWER IS 175,000 PLEASE SHOW ME HOW.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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VIOLET Company issued 7,000 convertible preference shares with ₱100 par value at ₱105 per share. One
₱ 595,000
₱ 35,000
₱ 140,000
₱ 175,000
THE ANSWER IS 175,000 PLEASE SHOW ME HOW.
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