On January 1, 2020, Miya Co. issued a 5% redeemable preference share with aggregate parvalue...
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Accounting
On January 1, 2020, Miya Co. issued a 5% redeemable preference share with aggregate parvalue of P3,000,000 for P2,800,000. Transaction cost incurred amounted to P212,173.65. The shareholders can present the shares for redemption at anytime beginning January 1, 2022.Based on Miya's past experience shares are usually redeemed after 5 years. The effectiveinterest rate is 3%. Provide for journal entries, amortization table and all necessarycomputations.
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