Why these preference shares is convertible into 100 L’Occitane ordinary share. The ordinary share capital (in the second image)aren't 3000000 and debit another subject (I don't know how to balance it). Share s utA120X9Nov.1Preference Share CapitalOrdinary Share CapitalTo record conversion of preference shares into ordinary shares.30,0003.430,000As you can see, we merely remove Preference Share Capital from the books and increaseOrdinary Share Capital by the book value of the preference shares.Mid-Chapter Summary Problemling of the first half of this chapter by deciding whether each of the fol- 256655Kesuleni 10UR Prosperous and creditworthy. Gee-WhizZ looks debt-ree and appears to hay esasset. Will you invest in this new business? Here are two takeaway lessons:1. Some accounting values better represent the underlying economic phenomenon2. Not all financial statements mean exactly what they say-compliance witstandards and an audit by an independent CPA lend more credibility to theporting process.Preference SharesAccounting for preference shares follows the same pattern we illustrated for ordina y sharesWhen a company issues preference shares, it credits the Preference Share account at its par valuwith any excess credited to Paid-in Capital in Excess of Par-Preference Shares. There may beseparate accounts for paid-in capital in excess of par for preference shares. Many companies com-bine paid-in capital in excess of par from both preference and ordinary share transactions into oneaccount. Accounting for no-par preference shares follows the pattern for no-par ordinary shares.Earlier we saw how to account for convertible bonds payable (see Chapter 9). Companies alsoissue convertible preference shares. The preference shares may be convertible into the company'sordinary shares at the discretion of the preference shareholders.For example, let's assume that at some time in the future, in November 20X7, L'Occitaneissued 30,000 preference shares of €1 par value for €50,000. Each of these preference shares isconvertible into 100 L'Occitane ordinary shares. Suppose these preference shares are convertedin November 20X9. The journal entries to record this series of transactions would be:A120X7Nov.50,000CashPreference Share CapitalShare PremiumTo record issuance of preference shares above par.34.30,00020,0006

Preference shares is one of source to arrange the funds for the firm. Preference shares have…

Why these preference shares is convertible into 100 L’Occitane ordinary share. The ordinary share capital (in the second image)aren't 3000000 and debit another subject (I don't know how to balance it).

Why these preference shares is convertible into 100 L’Occitane ordinary share. The ordinary share capital (in the second image)aren't 3000000 and debit another subject (I don't know how to balance it).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If a certain stock sells for 626.659 dollars on the NYSE, how much will it sell for, in dollars, on the LSE(London stock exchange). Remember that the distance between NYSE and LSE is about 3,460 miles.
Please help me with all answers thanku
Question III: In the following, suppose that neither stock pays a dividend. (a) Suppose you have a call option that permits you to receive one share of Apple by giving up one share of AOL. In what circumstance might you early-exercise this call? (b) Suppose you have a put option that permits you to give up one share of Apple, receiving one share of AOL. In what circumstance might you early-exercise this put? Would there be a loss from not early-exercising if Apple had a zero stock price? (c) Now suppose that Apple is expected to pay a dividend. Which of the above answers will change? Why?
In a few sentences, answer the following question as completely as you can. You are discussing stock valuation techniques with your broker. You mention that your Finance professor stated that “a stock that will never pay a dividend is valueless.” Your broker says this is not true because you can always sell the stock to someone else (thus, a capital gain is possible) a share of stock represents a share of ownership in something tangible (i.e., the issuing firm).Argue for or against your broker’s position.
D6)
Which of the following statements is false? options: Outstanding shares equals issued shares minus treasury shares. Equity value equals shares outstanding times share price. Equity value equals enterprise value plus debt. Authorized shares might be interesting but not relevant in any of our calculations Enterprise value equals equity value plus debt value.