On 1 January, a company issues a bonus issue of $10\,000$ ordinary shares at $\$0.50$ each. Later in the year, it carries out a rights issue of $15\,000$ ordinary shares at $\$0.60$ each. What effect do these have on the statement of financial position?
- Ashare capital and reserves increase $9\,000$; current assets increase $9\,000$
- Bshare capital and reserves increase $9\,000$; current assets increase $12\,500$
- Cshare capital and reserves increase $14\,000$; current assets increase $9\,000$
- Dshare capital and reserves increase $14\,000$; current assets increase $14\,000$