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On 1/1/16, Everwood Co, issues 10,000 shares of P10 par value convertible preference shares for P12 cash per share. Each share is convertible into 2
On 1/1/16, Everwood Co, issues 10,000 shares of P10 par value convertible preference shares for P12 cash per share. Each share is convertible into 2 ordinary shares. On this date the P2 par value ordinary shares are selling for P3 per share. Approximately 2 years later, Everwood's shareholders' convert their preference shares into ordinary shares. On the date of conversion the preference shares are selling for P16 and the ordinary shares are selling for P5 per share. The journal entry on conversion date will include which of the following?
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