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Question - The stakeholder' equity section in the balance sheet of Sun 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 - Show the equity section in Sun Ltd.'s 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.
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