Montes Company issued 20,000 preference shares of P100 par value for P 2,500,000, with 20,000 warrants to acquire 10,000 ordinary shares, P50 par, at P60.  On the date of the issuance, the warrants have a market value of 10%, but the preference share has no known market value ex-warrant. What is the journal entry to record the issuance of preference share with share warrants?

Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…

A: Introduction: Preferred stock is similar to a regular stock in that it is a share in a corporation,…

Q: During the year 2021 a company earned P376,000 during a period when it had an average of 100,000…

A: Earnings per share= Net income for the year / No. of shares in average Incremental shares= {(Average…

Q: V6.  On January 1, Stunt Corp. had outstanding convertible bonds with a face value of $1,000,000 and…

A: Lets understand the basics. Bond is a liability of the company but on other hand equity is a owners…

Q: Sweet Company has bonds payable outstanding in the amount of $650,000, and the Premium on Bonds…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for…

Q: On 30 March 20X4, Jason Inc subscribed to purchase 1,600 common shares of BIT-Split Corporation for…

A: Stock (or shares) subscribed by an investor is recorded on the asset side of the balance sheet. The…

Q: Apple Corporation was authorized to issue 10,000 preference shares of P200 par value and 100,000…

A: Premium amount is the difference between the subscription price and face value If the subscription…

Q: The Vermillion Inc. wants to raise its working capital. The Company decides to issue 6,000 shares of…

A: A warrant is a type of financial instrument that businesses would offer in return for a cost or…

Q: BFAR Corp. has 500,000 shares authorized and has the following information at the end of its first…

A: Shares are a type of securities, the holders of which get rights to participate in the profits of…

Q: Item No. 10 is based on the following information: EL bno S.I.20 met mo) ove18 to besinsgro Sweety…

A: A share or stock is classified as a delinquent share if the unpaid subscription is not paid within…

Q: Bond Company had the following amounts in equity before issuing its annual dividend. Ordinary share…

A: Lets understand the basics. Dividend is declared by the entity in order to provide return on their…

Q: Bloosom Corporation has issued 2,000 ordinary shares and 400 preference shares for à luE Required:…

A: The different shares issued for lump sum payment are allocated the money on the basis of ratio of…

Q: share premium from preference shares

A: Par value of the ordinary shares (50,000 shares * P100) P5,000,000 Par value of preference share…

Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…

A: A bond is borrowing security issued by a company to raise funds from the market by making an…

Q: BFAR Corp. has ordinary share capital with par value of $50, and preference share capital with par…

A: BFAR Corp has ordinary share capital at par value of P 50 and preference capital at par value of P…

Q: Application of the treasury stock method for the assumed exercise of these warrants in computing…

A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of…

Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…

A: Grouper Company already issued 350 bonds ($350,000/$1,000). Now, each bond is converted to 20…

Q: Montes Company issued 20,000 preference shares of P100 par value for P 2,500,000, with 20,000…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: ly 1, year 7, Wing al of 5,000 shares of 100 0 noncumulative preferred stock ,togethe letachable…

A: Journal entries refer to the systematic documentation of the financial transactions of a company in…

Q: The XL Co. issued 5,000 shares of P50 par preference shares 1,000 detachable warrants at P400,000.…

A: Here in this question, we are required to split the consideration between share warrant and…

Q: Fraudi Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50…

A: Solution Given Number of ordinary shares 50000 Number of preference shares 80000…

Q: love company issued 20,000 preference shares of 100 par value for P2,500,000 with 20,000 warrants to…

A: Preference shares Value = P 2500000 Total warrants = 20000 Warrants exercised = 18000 Warrants…

Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…

A: Preference share dividend: The cash dividends that a corporation pays out to its preferred…

Q: How much is the total Share Capital in the following * On January 1, 2011, AM PNGET Co. received…

A: Total share capital is the price of subscribed share capital which has been received.

Q: Kind Ltd issued a 3 million non-cummulative preference shares for the price of $3.25 million, On 1…

A: Non-cumulative preference shares are those on which the dividend is not accumulated if not paid in a…

Q: YZ SAOG has in issue 5 million, RO 1 equity share. The company decided to make a bonus issue in the…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock…

A: The warrants are the options to purchase share at a specified exercise price. It can be issued along…

Q: BFAR Corp. was formed on June 1 with 100,000 authorized shares having a par value of P20. The…

A: when company issue share capital and shares to the shareholders there received application allotment…

Q: What journal entry may result for the following using memorandum entry? * On January 1, 2011, AM…

A: At the time of issue of shares, generally company receives cash amount in exchange of the common…

Warrants