A Level Accounting (9706)•9706/12/M/J/22
Explanation
Missing details on rights issue prevent calculation
Steps:
- Initial shares: 100,000 at 100,000 share capital, no premium.
- Bonus issue (1:4): 25,000 new shares from retained earnings, share capital to 0.
- Rights issue (1 June): Number of shares and ratio unspecified, so premium = (new shares × $0.50) cannot be determined.
- All rights taken up, but without quantity, no numerical result possible.
Not enough information.
Final answer: Not enough information.
Topic: Preparation of financial statements
Practice more A Level Accounting (9706) questions on mMCQ.me