- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
- Posts
Sir. there is an additional information.
1) On 1 October 2002, Hollywood issued 60,000 $0.50 ordinary shares at a premium of 100%. A bonus issue of one for ten shares held was made on 1 November 2002; all shares in issue qualified for the bonus.
Capital and Reserves:……………………2003………..2002
Ordinary shares $0.50 each…………….363………….300
share premium………………………………..89……………92
Revaluation reserve…………………………50……………..0
Retained earning…………………………….63……………(70)the answer sheet is below
Cash flows from financing activities:
Proceeds from issue of share capital(60*$1)………………….60Sir, i don’t know how the figure of 60 comes out.
could you possibly explain to me how they get 60?
my working is get stuck till…..below
Dr cash 30
Cr Share capital 30because they don’t notify the range of the share that i must apply to figure the bonus issue…. such as “we issued 3,000 bonus issue” or 4,000….
maybe in my head, most of the knowledge disappear about issuing shares, but just i still remember how the T-entries open.thank you for your efforts that you leave your answers on my questions on weekends.
hopefully, i don’t bother you
thanks:)
Regard
your studentIt’s all here!
“On 1 October 2002, Hollywood issued 60,000 $0.50 ordinary shares at a premium of 100%. A bonus issue of one for ten shares held was made on 1 November 2002; all shares in issue qualified for the bonus.”
At the start of the year there was $300,000 worth of 50 cent shares … so there was in issue 600,000 shares
On 1 October, a further 60,000 shares were issued, so now there are in issue 660,000 shares
On 1 November, a bonus issue of shares were made on the basis of 1 new share for every 10 in issue. There were 660,000 shares in issue as at the end of October and one new one for each of those 10 means that the bonus issue involved 66,000 shares
After the bonus issue there are now 726,000 shares in issue and, in dollar terms, that’s $363,000 worth of equity shares of 50 cents each
Better?
- The topic ‘Sir…. help me’ is closed to new replies.