One of the companies set a capital structure on December 31, 2017 and it was as follows: Ordinary share capital (7,000,000 shares of 250 baisa each) RO 4,000,000 Share premium accour 300,000 Retained earnings RO 800,000 Legal Reserve account RO 250,000 In 2018, the company rights issued issue to 1 share for every 2 held at a price of OMR 1 per share, a offer was accepted in full. After that the company offered the right issue with a ratio of 1 share for every 5 held. The market v
One of the companies set a capital structure on December 31, 2017 and it was as follows: Ordinary share capital (7,000,000 shares of 250 baisa each) RO 4,000,000 Share premium accour 300,000 Retained earnings RO 800,000 Legal Reserve account RO 250,000 In 2018, the company rights issued issue to 1 share for every 2 held at a price of OMR 1 per share, a offer was accepted in full. After that the company offered the right issue with a ratio of 1 share for every 5 held. The market v
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:One of the companies set a capital structure on December 31, 2017 and it was as follows:
Ordinary share capital (7,000,000 shares of 250 baisa each) RO 4,000,000 Share premium account RO
300,000 Retained earnings RO 800,000 Legal Reserve account RO 250,000
In 2018, the company rights issued issue to 1 share for every 2 held at a price of OMR 1 per share, and this
offer was accepted in full.
After that, the company offered the right issue with a ratio of 1 share for every 5 held. The market value of
the shares prior to right issue was RO 3000.
Journalize the following transactions and show the working along with the abstract of SOFP only the equity
part. Also calculate the theoretical ex right price.
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