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Show the equity section in loura ltd balance sheet

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Reference no: EM132914072

The stakeholder' equity section in the balance sheet of Loura Ltd. is as follows:
                                                                   $
Equity
Share Capital: Ordinary shares of 50p each      250,000
Reserves: Share premium                             250,000
Reserves: Retained Earnings                         100,000
                                                                600,000

Required:

Problem a: Show the equity section in Loura Ltd. balance sheet after the actions detailed below (both actions are independent of each other):

1. A one for five bonus issue, capitalizing the share premium account.

2. A right issue of one for five at $ 1.2, assuming that all rights are taken up.

Reference no: EM132914072

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