share issues question

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June 11, 2012 at 2:48 pm #53328
drewjusloveable
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How do you work this question ON share capital (company accounts)?

Ordinary share $1 each $100
Share premium $80

DURING THE YEAR END 30 June the following transactions took place.
1 Sept 2005 a bonus issue of 1 ordinary share for every 2 held, using the share premium account

1 Jan 2006 a fully subscribed rights issue of 2 ordinary shares for every 5 held at that date, at 1.50 per share.

What should the balances be on each account at 30 June 2006?

Share capital share premium account
210 110
210 60
240 90
240 80

PLEASE SHOW THE WORKING. THANK YOU
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