On July 1,2019, Qwerty Company issued rights to shareholders to subscribe to additional ordinary shares....
70.2K
Verified Solution
Link Copied!
Question
Accounting
On July 1,2019, Qwerty Company issued rights to shareholders to subscribe to additional ordinary shares. One right was issued for each share owned. A shareholder could purchase one additional share for ten rights plus P 60 cash. The rights expire on September 30,2019. On July 1,2019, the market price of a share with the right attached was P 160 while the market price of one right alone was P 8. Qwerty Company's shareholder's equity on June 30,2019 comprise the following:
Ordinary share capital, P100 par ( 4,000 shares issued and outstanding) P 400,000
Share premium 240,000
Accumulated profits 320,000
Assuming on July 31,2019, 2,500 share rights were exercised, by what amount would Qwerty company's total shareholder equity increase as a result of the exercise of share rights?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.