What amount of share premium should Berting Company record as a result of the conversion? 1,500,000 1,350,000
What amount of share premium should Berting Company record as a result of the conversion? 1,500,000 1,350,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2023, after recording interest and amortization, Berting Company converted P2 million bonds of its 12% convertible bonds into 50,000 ordinary shares, P25 par value. On the conversion date, the carrying amount of the bonds was P2,600,000 and the paid in capital arising from the conversion privilege recognized in the accounts is P150,000. The market value of the bonds without the conversion privilege was P2,800,000 and Berting Company’s ordinary share was publicly traded at P45 each.
What amount of share premium should Berting Company record as a result of the conversion?
What amount of share premium should Berting Company record as a result of the conversion?
1,500,000
1,350,000
500,000
350,000
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