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12. During the current year, Hyatt Company issued for P110 per share, 15,000 convertible preference shares of P100 par value. One preference share may be converted into three ordinary shares of P25 par value at the option of the preference shareholder. At year-end, all of the preference share were converted into ordinary shares. The market value of the ordinary share at the conversion date was P40.   a. What amount should be credited to ordinary share capital as a result of conversion? b. What amount should be credited to share premium as a result of the conversion

12. During the current year, Hyatt Company issued for P110 per share, 15,000 convertible preference shares of P100 par value. One preference share may be converted into three ordinary shares of P25 par value at the option of the preference shareholder. At year-end, all of the preference share were converted into ordinary shares. The market value of the ordinary share at the conversion date was P40.   a. What amount should be credited to ordinary share capital as a result of conversion? b. What amount should be credited to share premium as a result of the conversion

FINANCIAL ACCOUNTING
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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12. During the current year, Hyatt Company issued for P110 per share, 15,000 convertible preference shares of P100 par value. One preference share may be converted into three ordinary shares of P25 par value at the option of the preference shareholder. At year-end, all of the preference share were converted into ordinary shares. The market value of the ordinary share at the conversion date was P40.
 
a. What amount should be credited to ordinary share capital as a result of conversion?

b. What amount should be credited to share premium as a result of the conversion?
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