Question
The Company has Preference Share Capital with 10,000 issued shares at P 100 par and Ordinary Share Capital with 100,000 issued shares at P 30
The Company has Preference Share Capital with 10,000 issued shares at P 100 par and Ordinary Share Capital with 100,000 issued shares at P 30 stated value. All preference shares were issued at P 150 per share while the ordinary shares were issued at P 50 per share. Assuming: half of preference shares were converted into ordinary shares with the ratio of 1 PS for 6 OS. How much should be debited to Preference Share Premium and Retained Earnings in relation to conversion?
Group of answer choices
a. Preference share premium 250,000; Retained Earnings 150,000
b. Preference share premium 250,000; Retained Earnings 250,000
c. Preference share premium 100,000; Retained Earnings 250,000
d. Preference share premium 250,000; Retained Earnings 750,000
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High Performance Cloud Auditing And Applications
Authors: Keesook J. Han, Baek-Young Choi, Sejun Song
1st Edition
1493944355, 978-1493944354
