Solution-Difference between a bonus issue and a right

Difference between a bonus issue and a right issues of share

Reference no: EM132736734

Question: CD had 5,000.00 R1 ordinary shares in issue. Subsequently, CD made a right issue of 1new ordinary share at R3. 50 per share for every 5 ordinary currently held. At the same date CD's ordinary shares were trading at R4. 75.

Required: 1.explain the difference between a bonus issue and a right issues of shares.

2. Prepare the journal entries required to record CD's rights issue in its financial records, assuming that all rights were taken up

Reference no: EM132736734

Questions Cloud

What is the balance of the unearned revenue account : On June 1, 2018, Matubay Insurance Company collected $490,000 for a 2-year insurance policy beginning on the same date. The company has a December 31 year end.

Will has watched football religiously his entire life : Discussing religious beliefs during a company meeting and Which of the following is most likely to be a protected advocacy or proselytizing activity

Determine the inventory cost using the fifo : There are 46 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using.

What was the flexible budget variance for total utility cost : What was the flexible budget variance for total utility costs in 2019? [Assume that a positive number means a favorable variance and a negative number]

Difference between a bonus issue and a right issues of share : CD had 5,000.00 R1 ordinary shares in issue. Subsequently, CD made a right issue of 1new ordinary share at R3. 50 per share for every 5 ordinary currently held.

How much is credited to share warrants : Warrant - P 4; Ordinary share - P 75. Subsequently, all of the warrants were exercised. On the date of issuance, how much is credited to share warrants?

Compute cost of a lost discount as an annual percentage rate : On November 15, 2015, Shields Company purchased inventory costing $6,200 on credit. The credit terms were 2/10, n/30. Assume that Shields Company paid the.

Find the total shareholders equity at december : Find the total shareholders' equity at December 31, 2020, assuming that profit for the year was P 280,000 and cash dividends declared were P 200,000.

CIS 348 Information Technology Project Management Assignment : CIS 348 Information Technology Project Management Assignment Help and Solution - Strayer University, USA - Homework Help - Project Proposal

User Account

All Pages

Difference between a bonus issue and a right issues of share

Reference no: EM132736734

Reference no: EM132736734

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

Present the value of annuities

Determine the selling price of the bonds

Net operating income or loss-eliminating northern division

Question regarding bond yield to maturity

How much gain or income will Sam recognize

Blackmon manufacturing company makes a product that it

Find out long term liablities

How much should keith bowie deposit today

Prepare the correcting entry necessary

Prepare journal entries in good form for each transactions

Prepare an incremental analysis for the special order round

What amount will be reported on the balance sheet

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT