A company has issued 300 000 ordinary shares of $0.50 each. It makes a bonus issue of
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A company has issued 300 000 ordinary shares of $0.50 each. It makes a bonus issue of two shares for every three already held. It follows that with a rights issue of one share for every two already held at $0.75 per share. The rights issue was fully taken up.
What was the increase in the Share Capital account as a result of the bonus and rights issues?
A. $150 000
B. $175 000
C. $225 000
D. $275 000
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To calculate the increase in the Share Capital account as a result of the bonus and rights issues we ...View the full answer
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