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P 16-1

1. The document records several share transactions including the issuance of share rights, warrants, and options. 2. Entry numbers 3, 4, and 6 show cash being received in exchange for shares issued upon the exercise of rights, warrants, and options. 3. A summary at the end calculates that a total of 320,100 shares have been issued, comprising the initial 300,000 shares plus additional shares from rights, warrants, and options exercises. Total equity is calculated to be €5,078,000.

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Arista Yuliana Sari
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56 views2 pages

P 16-1

1. The document records several share transactions including the issuance of share rights, warrants, and options. 2. Entry numbers 3, 4, and 6 show cash being received in exchange for shares issued upon the exercise of rights, warrants, and options. 3. A summary at the end calculates that a total of 320,100 shares have been issued, comprising the initial 300,000 shares plus additional shares from rights, warrants, and options exercises. Total equity is calculated to be €5,078,000.

Uploaded by

Arista Yuliana Sari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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P.

16-1

A. 1. Memorandum entry made to indicate the number of rights issued.

2. Cash..................................................................... 208,000

Bonds Payable ........................................................ 192,000

Share Premium—Share Warrants ............................ 16,000

3. Cash................................................................... 304,000

Share Capital—Ordinary (9,500 X 10)....................... 95,000

Share Premium—Ordinary...................................... 209,000

Cash => [(100,000 – 5,000) rights exercised] ÷ [(10 rights/share) X €32 = €304,000

4. Share Premium—Share Warrants (€16,000 X 80%) .................... 12,800

Cash…........................................................................................... 48,000

Share Capital—Ordinary (1,600 X €10)......................................... 16,000

Share Premium—Ordinary............................................................ 44,800

Cash => 0,80 X €200,000/€100 per bond = 1,600

=> warrants exercised; 1,600 X €30 = €48,000

5. Compensation Expense(10 X 10,000).................................... 100,000

Share Premium—Share Options ............................................... 100,000

6. For options exercised :

Cash (9,000 X €30)..................................................................... 270,000

Share Premium—Share Options (90% X €100,000) .................... 90,000

Share Capital—Ordinary (9,000 X €10)............................................ 90,000

Share Premium—Ordinary............................................................. 270,000

For options lapsed:

Share Premium—Share Options....................... 10,000

Compensation Expense............................. 10,000


B.

Share Capital Share Premium


At beginning of year 300,000 shares 600,000

From share rights (entry #3) 9,500 shares 209,000


From share warrants (entry #4) 1,600 shares 44,800

From share options (entry #6) 9,000 shares 270,000


Total 320,100 shares 1,123,800

Equity:

Share Capital—Ordinary €10 par value, authorized 1,000,000 shares,

320,100 shares issued and outstanding........................................3,201,000

Share Premium—Ordinary .......................................................... 1,123,800

Share Premium—Share Warrants....................................................... 3,200

€4,328,000

Retained Earnings................................................................................... 750,000

Total Equity........................................................................................ €5,078,000

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