Question 3 Part a On 1 st July 2020 Boober plc had in issue 65 million ordinary shares (nominal value 25p per share) and 8 million 6 convertible preference shares (nominal value 1 per share), each convertible into 2 ordinary shares after 1 st July 2028 The company's reported basic earnings per share for the year to 30 th June 2020 was 9 1p per share The directors made a 1 for 5 rights issue on 1 st January 2021 when the market price per share was 150p This issue, at a rights price of 120p, was taken up in full On 1 st April 2021 they made a further issue of 2 2m shares at the full market price of 1 80 per share The issue was fully subscribed and fully paid The reported profit for the year ended 30 th June 2021 after tax at 30 was 7 32m Preference dividends are treated as a finance cost in accordance with IAS32 Calculate Boober plc's basic earnings per share for the year ended 30th June 2021 and any comparative figures Calculate the companys diluted earnings per share for the year ended 30th June 2021 Explain your treatment of the rights issue above AND how this enhances the quality of the financial statements 140 WORDS Part b Mokey Merchants Ltd also has a reporting date of 30 th June each year On 1 st July 2018 Mokey Merchants Ltd acquired a piece of machinery for 60,000 The machine was entitled to capital allowances of 40 in the year of acquisition and 30 annually thereafter It had an estimated useful economic life of 6 years and no residual value Following a change in the product mix, the machine was sold on 30 th June 2021 for 30,000 Pre tax profit for the year ended 30 th June 2021 (after adjustment for depreciation) is 382,000 Mokey Merchants Ltd had no deferred tax balances at 1 st July 2018 and no other capital transactions in the 3 years to 30 th June 2021 The applicable current tax rate in the year to 30 th June 2021 is 30 Required Prepare extracts of the income statement and statement of financial position for Mokey Merchants Ltd for the year ended 30 th June 2021 showing the tax, pre tax profit and after tax profit Answer needed in 1hr 30mins please

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Question 3 Part a On 1 st July 2020 Boober plc had in issue 65 million ordinary shares (nominal value 25p per share) and 8

Question 3

Part a

On 1^st July 2020 Boober plc had in issue 65 million ordinary shares (nominal value 25p per share) and 8 million 6% convertible preference shares (nominal value 1 per share), each convertible into 2 ordinary shares after 1^st July 2028.

The company's reported basic earnings per share for the year to 30^th June 2020 was 9.1p per share.

The directors made a 1 for 5 rights issue on 1^st January 2021 when the market price per share was 150p. This issue, at a rights price of 120p, was taken up in full.

On 1^st April 2021 they made a further issue of 2.2m shares at the full market price of 1.80 per share. The issue was fully subscribed and fully paid.

The reported profit for the year ended 30^th June 2021 after tax at 30% was 7.32m. Preference dividends are treated as a finance cost in accordance with IAS32.

Calculate Boober plc's basic earnings per share for the year ended 30th June 2021 and any comparative figures

Calculate the companys diluted earnings per share for the year ended 30th June 2021.

Explain your treatment of the rights issue above AND how this enhances the quality of the financial statements. [140 WORDS]

Part b

Mokey Merchants Ltd also has a reporting date of 30^th June each year.

On 1^st July 2018 Mokey Merchants Ltd acquired a piece of machinery for 60,000. The machine was entitled to capital allowances of 40% in the year of acquisition and 30% annually thereafter. It had an estimated useful economic life of 6 years and no residual value.

Following a change in the product mix, the machine was sold on 30^th June 2021 for 30,000.

Pre-tax profit for the year ended 30^th June 2021 (after adjustment for depreciation) is 382,000.

Mokey Merchants Ltd had no deferred tax balances at 1^st July 2018 and no other capital transactions in the 3 years to 30^th June 2021.

The applicable current tax rate in the year to 30^th June 2021 is 30%.

Required:

Prepare extracts of the income statement and statement of financial position for Mokey Merchants Ltd for the year ended 30^th June 2021 showing the tax, pre-tax profit and after-tax profit.

Answer needed in 1hr 30mins please