Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer the questions 13.10, 13.11 and 13.12 with your detailed explanations, it's much appreciated! 13.10 Which one of the following journal entries could correctly
Please answer the questions 13.10, 13.11 and 13.12 with your detailed explanations, it's much appreciated!
13.10 Which one of the following journal entries could correctly record a bonus issue of shares? OrdinarysharecapitalInvestmentsCashDebit$100,000Credit$100,000100,000 13.11 Which of these statements about limited liability companies is/are correct? (1) A company might make a bonus issue of shares to raise funds for expansion. (2) No cash is received when a company makes a rights issue of shares, instead other reserves (usually share premium) are capitalised and reclassified as share capital. (3) A rights issue of shares dilutes the shareholding of existing shareholders if they do not take up their rights. 1 and 3 2 and 3 1 and 2 3 only On 1 April 20X0 the company made an issue of 200,00050c ordinary shares at $1.30 each, and on 1 July the company made a bonus (capitalisation) issue of one share for every four in issue at the time, using the share premium account for the purpose. Which of the following correctly states the company's ordinary share capital and share premium account at 31 December 200Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started