On December 31, 2020, Green Inc. issued of its 8%, 10-year, P1,000 face value bonds with detachable stock warrants for P1,200,000. Each bond carried a detachable warrant for one share of Green's ordinary share at a specified option price of P25 per share. Immediately after issuance, the market price of the bonda without the warrants was P1,080,000. In its December 31, 2020 statement of financial position, what amount should Green report as equity reserve?

On December 31, 2020, Green Inc. issued of its 8%, 10-year, P1,000 face value bonds with detachable stock warrants for P1,200,000. Each bond carried a detachable warrant for one share of Green's ordinary share at a specified option price of P25 per share. Immediately after issuance, the market price of the bonda without the warrants was P1,080,000. In its December 31, 2020 statement of financial position, what amount should Green report as equity reserve?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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