37. Share warrants (from the bonds with detachable warrants)

a.5,400

b.9,000

c.14,400

d.0

e. No answer from the given choices.

38. Ordinary share capital (year-end balance, 2021)

a.21,411,000

b.21,611,000

c.21,000,000

d.5,411,000

e. No answer from the given choices.

39. Share premium from bond conversion

a.473,184

b.463,408

c.400,000

d.126,816

e. No answer from the given choices.

40. Share premium from the exercise of share warrants (Nov.1, 2021)

a.5,600

b.41,800

c.14,400

d.0

e. No answer from the given choices.

AQUAMARINE Corporation had the following account balances as of December 31, 2020: 8% convertible bonds @face value Php 2,000,000 Share capital (4,000,000 shares authorized, Php 10 part 1,600,000 shares issued) 1,600,000 4,590,000 Share Premium Retained Earnings 4,930,000 Treasury Shares at Cost 650,000 Transactions during 2021 and other information relating to the Corporations liability and equity follows: were as On January 2, 2017, AQUAMARINE Corporation issued Php 2,000,000 of 8% convertible bonds at par. The maturity of the bond is on January 1, 2021 and interest is payable annually every January 1. The bond contract entitles the holders. to receive 6, Php 10 par value ordinary shares in exchange for each 100 bonds. On the date of issue, the prevailing market interest rate for similar debt without the conversion option is 10%. PV of Principal 0.6830 3.1699 PFV of Interest Jan. 1, The holders of the bonds with a total face value of Php 1,000,000 exercised. 2021 the conversion privilege. On that date, the bonds were selling at Php 110 and the ordinary shares at Php 42. Jan. The corporation reissued 30,000 of its 50,000 treasury shares for Php 550,000. The treasury shares had been acquired February 28, 2020. 15, 2021 Feb. 1, 2021 Sold 180, Php 1,000, 9% bonds due February 1, 2031 at Php 103 with one detachable share warrant attached to each bond. Interest is payable annually on February 1. The fair value of the bonds without the share warrants is Php 95. The detachable warrants have a fair value of Php 50 each and expire on February 1, 2022. Each warrant entitles the holder to purchase 10 ordinary shares at Php 40. Jul. 1, 500,000 shares were issued for cash, par value Php 15. 2021 Nov. There were 110 share warrants detached from the bonds and exercised. 1, 2021 Dec. The remaining treasury shares were retired. 1, 2021 AQUAMARINE Corporation had the following account balances as of December 31, 2020: 8% convertible bonds @face value Php 2,000,000 Share capital (4,000,000 shares authorized, Php 10 part 1,600,000 shares issued) 1,600,000 4,590,000 Share Premium Retained Earnings 4,930,000 Treasury Shares at Cost 650,000 Transactions during 2021 and other information relating to the Corporations liability and equity follows: were as On January 2, 2017, AQUAMARINE Corporation issued Php 2,000,000 of 8% convertible bonds at par. The maturity of the bond is on January 1, 2021 and interest is payable annually every January 1. The bond contract entitles the holders. to receive 6, Php 10 par value ordinary shares in exchange for each 100 bonds. On the date of issue, the prevailing market interest rate for similar debt without the conversion option is 10%. PV of Principal 0.6830 3.1699 PFV of Interest Jan. 1, The holders of the bonds with a total face value of Php 1,000,000 exercised. 2021 the conversion privilege. On that date, the bonds were selling at Php 110 and the ordinary shares at Php 42. Jan. The corporation reissued 30,000 of its 50,000 treasury shares for Php 550,000. The treasury shares had been acquired February 28, 2020. 15, 2021 Feb. 1, 2021 Sold 180, Php 1,000, 9% bonds due February 1, 2031 at Php 103 with one detachable share warrant attached to each bond. Interest is payable annually on February 1. The fair value of the bonds without the share warrants is Php 95. The detachable warrants have a fair value of Php 50 each and expire on February 1, 2022. Each warrant entitles the holder to purchase 10 ordinary shares at Php 40. Jul. 1, 500,000 shares were issued for cash, par value Php 15. 2021 Nov. There were 110 share warrants detached from the bonds and exercised. 1, 2021 Dec. The remaining treasury shares were retired. 1, 2021