6 of 57 Question 5 On 1.1.18, the equity of Company 5 was as follows: Share capital: 50,000 shares of 50p each 25,000 Share premium: 6,000 Retained profits: 290,000 321,000 On that day, the company made a rights issue, issuing 50,000 shares for 1.30 each and then made a 8 for 5 bonus issue. A dividend of 15p per share was then paid. What will the balance be on the retained profits at the end of the day, assuming the company offsets the bonus issue against the share premium, to the extent that is possible? b Retained profits 1347,000 217,000 L251,000 L244,600 C d a d Retained profits 347,000 b 217,000 251,000 244,600 SC: 25,000 + (50,000 x 50p) = 50,000+80,000 = 130,000. SP: 6,000 + 50,000 x 80p = 46,000 - 46,000 = 0. RP: 290,000 = 290,000 - 34,000 - (260,000 x 15p) = 217,000. Total equity = 347,000 = 321,000 + 65,000 - 39,000 = 347,000. Number of shares = 130,000/50p = 260,000. Dividend = 260,000 shares 0 15p = 39,000. for this question, I do not understand how you get the 46.000 ( Bonus issue offset, under "Share premium") and $34.000 ( Bonus issue offeet, under "Retained profit"). It would really help if you can explain how You get that value. Thank you