Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

X plc has the following share capital and reserves as at 31 Dec 2015: 600 000 10p ordinary shares.. 000 Share premium.... Retained profit..... .....41

image text in transcribed
X plc has the following share capital and reserves as at 31 Dec 2015: 600 000 10p ordinary shares.. 000 Share premium.... Retained profit..... .....41 000 ...23 000 ..... 124 000 The current market price of a share is 3. The directors undertake a rights issue 1 for 15 followed by bonus issue of 4 new ordinary shares for every 3 held. Calculate capital and reserves section of the balance sheet after the issues. ordinary shares Share premium Retained profit 64000 157000 23000 244000 ordinary shares Share premium Retained profit 149333 71667 23000 244000 ordinary shares Share premium Retained profit 112000 109000 23000 244000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

2nd Canadian Edition

0176707123, 978-0176707125

More Books

Students also viewed these Accounting questions