Exercise 10-4(Conversion of Preference Shares into Ordinary Shares) The Jazam Company...
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Accounting
Exercise Conversion of Preference Shares into Ordinary Shares
The Jazam Company has shares of convertible preference share capital, par value P and shares of P par ordinary share capital. The preference shares were originally issued at P
On September three thousand preference shares were converted into ordinary shares.
Instructions:
Record the conversion of preference shares into ordinary shares assuming:
a Each preference share is converted into ordinary shares
b Each preference share is converted into ordinary shares
c Each preference share is converted into ordinary shares
State the number of issued and outstanding preference shares and ordinary shares for each of the three assumptions.
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