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In 2002 a company was formed by an issue of 100,000 $0.50 shares at par.
In 2007 they had a 1 for 2 rights issue at $1.20
In 2010 they had a 1 for 6 bonus issue.
What were the balances on the share capital and share premium accounts after the bonus issue.
Could anyone show the working for this question please
2002:
share capital: $50,000 (100,000 shares)
share premium: $0
Total: $50,000 / 100,000 shares2007:
rights issue of 50,000 shares:
share capital: $75,000 = $50,000+$25,000 (50,000 shares * $0,50)
share premium: $35,000 (50,000 shares * ($1,20 – $0,50))
Total: $110,000 / 150,000 shares2010:
bonus issue of 25,000 shares:
share capital: $87,500 = $75,000 + $12,500 (25,000 shares * $0,50)
share premium: $22,500 = $35,000 – $12,500 (25,000 shares * $0,50)
Total: $110,000 / 175,000 shares
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