Denside Ltd has the following summarized statement of financial position: The company is considering three possible changes

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Denside Ltd has the following summarized statement of financial position:

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The company is considering three possible changes to its capital structure:
(i) issue for cash 50,000 additional ordinary shares at \(£ 1\) per share, fully paid, or (ii) make a bonus issue from retained earnings of one ordinary share for every four previously held, or (iii) make a 1-for- 5 rights issue at \(£ 3\) per share.
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(a) Prepare journal entries to record each of the above transactions.

(b) Show separately the impact of each change on the statement of financial position of the company.

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Financial Accounting And Reporting

ISBN: 9780077138363

2nd Edition

Authors: John McKeith, Bill Collins

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