An entity issued P5,000,000 face amount 5-year bonds at 120. Enca P1,000 bond was issued with 20 nondetachable share warrants. Each warrant entitled the bondholder to purchase one share of P20 par value for P25. Immediately after issuance, the market value of each warrant was PS. The interest rate is 11% payable annually every December 31. The prevailing market rate of interest for similar bonds without warrants is 12%. The PV of 1 at 12% for 5 periods is 0.57 and the PV of an ordinary annuity of 1 at 12% for 5 periods is 3.60). What amourt should be recorded as increase in equity as a result of the bond issuance? a. 1,170,000 b. 1,000,000 e. 2,000,000 d. 0 12. An entity issued 5.000 convertible hands with 1-1.000 ince amount per bond. The bonds mature in three years and are issued at ito. Interest is payable anulis ovary Decenber 3! at a nominal 6% interest rate. Each hond is convertible at anytire up to maturi.yunt: ta shares with par value of Ps. It is reliably detemtined that the bonds would sell only a PLUX 200 without the conversion privilege. What is the equity component of the unique issuance of the convertible bonds? a. 500,000 h. 400,000 c. 900.000 d. 0 13. After recording interest and tonization, an entity converted P5,000,000 of 12% convertible bonds into 50,000 sharss of 251) par ville On the conversion C, the carrying amount of the bonds payable was P6,000,000 or makes value of the boss was 16 591.000. and the share was publicly trading at PISO The entity insured 10,00 inchoutin with the conversion. When the bonds were originally isso, the county content as recorded : 100.000. What amount of share premium should be recorded as a tusult of the conversion? a. 5,000,000 b. 3.500,000 c. 4,900,000 d. 3.400.000 An entity issued P5,000,000 face amount 5-year bonds at 120. Enca P1,000 bond was issued with 20 nondetachable share warrants. Each warrant entitled the bondholder to purchase one share of P20 par value for P25. Immediately after issuance, the market value of each warrant was PS. The interest rate is 11% payable annually every December 31. The prevailing market rate of interest for similar bonds without warrants is 12%. The PV of 1 at 12% for 5 periods is 0.57 and the PV of an ordinary annuity of 1 at 12% for 5 periods is 3.60). What amourt should be recorded as increase in equity as a result of the bond issuance? a. 1,170,000 b. 1,000,000 e. 2,000,000 d. 0 12. An entity issued 5.000 convertible hands with 1-1.000 ince amount per bond. The bonds mature in three years and are issued at ito. Interest is payable anulis ovary Decenber 3! at a nominal 6% interest rate. Each hond is convertible at anytire up to maturi.yunt: ta shares with par value of Ps. It is reliably detemtined that the bonds would sell only a PLUX 200 without the conversion privilege. What is the equity component of the unique issuance of the convertible bonds? a. 500,000 h. 400,000 c. 900.000 d. 0 13. After recording interest and tonization, an entity converted P5,000,000 of 12% convertible bonds into 50,000 sharss of 251) par ville On the conversion C, the carrying amount of the bonds payable was P6,000,000 or makes value of the boss was 16 591.000. and the share was publicly trading at PISO The entity insured 10,00 inchoutin with the conversion. When the bonds were originally isso, the county content as recorded : 100.000. What amount of share premium should be recorded as a tusult of the conversion? a. 5,000,000 b. 3.500,000 c. 4,900,000 d. 3.400.000
