1) XYZ Plc is making a rights issue. The current market price of the shares is 350 pence and the directors are proposing to make the rights issue at a price of 205 pence per share. The par value of the ordinary shares is 25 pence so the shares are being issued at a premium of 180 pence each. 12,000,000 ordinary shares are to be issued in the rights issue. How much cash will the rights issue raise?

2) Timmy Plc is making a bonus issue of 2 new ordinary shares for every 5 already held. The shares have a par value of 5 pence. Timmy plc currently has 500,000,000 ordinary shares in issue. What are the correct entries to record this transaction in the statement of financial position?