San Miguel Corporation had the following account balances as of December 31, 2020: 8% convertible bonds @face value 2,000,000 Share capital (4,000,000 shares authorized, Php 10 par, 1,600,000 shares issued) 1,600,000 Share premium 4,590,000 Retained earnings 4,930,000 650,000 Treasury shares at cost Transactions during 2021 and other information relating to the Corporations liability and equity were as follows: On January 2, 2017, San Miguel Corporation issued Php 2,000,000 of 8% convertible bonds at par. The maturity of the bonds 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%. PVF of principal- 0.6830 PFV of interest 3.1699 Jan. 01, 2021 The holders of the bonds with a total face value of Php 1,000,000 exercised the conversion privilege. On that date, the bonds were selling at Php 110 and the ordinary share at Php 42. Jan. 15, 2021 The corporation reissued 30,000 of its 50,000 treasury shares for Php 550,000. The treasury shares had been acquired February 28, 2020 Feb. 01, 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. 500,000 shares were issued for cash, par value Php 15. Jul. 01, 2021 Nov. 01, 2021 There were 110 share warrants detached from the bonds and exercised. Dec. 01, 2021 The remaining treasury shares were retired. Based on the above information, determine the balances of the ff: 1. Equity portion of the convertible bonds 2. Share warrants from the bonds with detachable warrants 3. Ordinary share capital 2021 4. Share premium from bond conversion 5. Share premium from exercise of share warrants on November 1, 2021 San Miguel Corporation had the following account balances as of December 31, 2020: 8% convertible bonds @face value 2,000,000 Share capital (4,000,000 shares authorized, Php 10 par, 1,600,000 shares issued) 1,600,000 Share premium 4,590,000 Retained earnings 4,930,000 650,000 Treasury shares at cost Transactions during 2021 and other information relating to the Corporations liability and equity were as follows: On January 2, 2017, San Miguel Corporation issued Php 2,000,000 of 8% convertible bonds at par. The maturity of the bonds 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%. PVF of principal- 0.6830 PFV of interest 3.1699 Jan. 01, 2021 The holders of the bonds with a total face value of Php 1,000,000 exercised the conversion privilege. On that date, the bonds were selling at Php 110 and the ordinary share at Php 42. Jan. 15, 2021 The corporation reissued 30,000 of its 50,000 treasury shares for Php 550,000. The treasury shares had been acquired February 28, 2020 Feb. 01, 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. 500,000 shares were issued for cash, par value Php 15. Jul. 01, 2021 Nov. 01, 2021 There were 110 share warrants detached from the bonds and exercised. Dec. 01, 2021 The remaining treasury shares were retired. Based on the above information, determine the balances of the ff: 1. Equity portion of the convertible bonds 2. Share warrants from the bonds with detachable warrants 3. Ordinary share capital 2021 4. Share premium from bond conversion 5. Share premium from exercise of share warrants on November 1, 2021
