Question
At 1 July 20X4 a limited liability company's capital structure was as follows: Share capital 1,000,000 shares of 50c each $500,000. Share premium account $
At 1 July 20X4 a limited liability company's capital structure was as follows: Share capital 1,000,000 shares of 50c each $500,000. Share premium account $ 400,000. In the year ended 30 June 20X5 the company made the following share issues: On 1 January 20X5: A bonus issue of one share for every five in issue at that date, using the share premium account. On 1 April 20X5: A rights issue of one share for every ten in issue at that date, at $1.60 per share. What will be the balances on the company's share premium accounts at 30 June20X5 as a result of these issues?
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