Point Company issued 25,000 shares of its P50 par ordinary and 40,000 shares of its P25 redeemable preference for a total amount of P3,000,00O. The redeemable preference shares has a mandatory redemption date 2 years after their issuance. At the date of issue, the ordinary shares had a market value of P65 per share and the preference shares are selling at P30 per share. What is the amount credited to share premium from ordinary shares?

Point Company issued 25,000 shares of its P50 par ordinary and 40,000 shares of its P25 redeemable preference for a total amount of P3,000,00O. The redeemable preference shares has a mandatory redemption date 2 years after their issuance. At the date of issue, the ordinary shares had a market value of P65 per share and the preference shares are selling at P30 per share. What is the amount credited to share premium from ordinary shares?

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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