Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

At 1 January, the company’s equity consisted of 100000 $1 ordinary shares. The directors then carried out these actions: 1 March: A rights issue of 20000 ordinary shares was made at $1.25 per share. The rights issue was fully subscribed. 1 June: A bonus issue of 5000 ordinary shares was made. 1 July: An interim dividend of $0.10 was paid on every share in issue on that date. Calculate the amount by which the bank account increased because of these transactions.

  • A$12500
  • B$17500
  • C$30000
  • D$37000

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