Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The statement of financial position of a company lists the following items. ordinary shares at $0.50$ each $900000 retained earnings balance $450000 long-term bank loan $30000 The company then distributes $100000$ bonus shares of $0.50$ each to its shareholders. What is the total equity after the bonus shares have been issued?

  • A$1300000
  • B$1350000
  • C$1380000
  • D$1400000

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