The equity of Duffy Ltd at 1.12.2022 was as follows: Share capital Share premium Revaluation reserve Retained profits 100,000 shares of 10p each £ 10,000 30,000 40,000 90.000 170.000 On 10.12.2022, the company made a bonus issue. 10 shares were issued for in such a way as to maximise the retained profits. The double entry reflecting this share issue is which of the following:

The equity of Duffy Ltd at 1.12.2022 was as follows: Share capital Share premium Revaluation reserve Retained profits 100,000 shares of 10p each £ 10,000 30,000 40,000 90.000 170.000 On 10.12.2022, the company made a bonus issue. 10 shares were issued for in such a way as to maximise the retained profits. The double entry reflecting this share issue is which of the following:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Prepare journal entries to record the transactions.

A: Treasury stock indicates the shares of the company bought back which in result decreases the…

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: In accounting, the value of an asset as it appears on a balance sheet and a measurement of a…

Q: Exercise 8-7 (Algo) Cash Budget [LO8-8] Garden Depot is a retailer that is preparing its budget for…

Q: These were issued at £1.50 per share. On February 20X8 Dr made a 2 for 3 bonus issue. Before…

A: Retained earnings balance after bonus shares = 717,000 - 300,000 Retained earnings balance after…

Q: Bond Company had the following amounts in equity before issuing its annual dividend. Ordinary share…

A: Lets understand the basics. Dividend is declared by the entity in order to provide return on their…

Q: Current Attempt in Progress Sandhill SA's ledger shows the following balances on December 31, 2022.…

A: Case a) Preference shares are cumulative & fully participatingCumulative preference shares are…

Q: Requirement 1. If George Weston had sold the shares for $80, would the $30 ($80-550) be profit for…

A: When a company issues shares, it receives cash from investors. The amount of cash received is…

Q: The following figures have been extracted from the financial statements of KND Ltd: Book Value of…

A: Here, 11% Debentures: $27 million debentures issued at $1,000. Long-term Loan: $7.18 million…

Q: Sanders plc issued 50,000 equity shares of 25p each at a premium of 50p per share. The cash received…

A: Share Capital -The money that a business raises by issuing shares to its investors is referred to as…

Q: The equity of Pango Pango Oil Extraction and Refining Company Limited at 30 June 2023 consisted of…

A: Stockholders' equity are the owner portion in the business, it shows the amount that equity and…

Question

The equity of Duffy Ltd at 1.12.2022 was as follows:
Share capital
Share premium
Revaluation reserve
Retained profits
100,000 shares of 10p each
£
10,000
30,000
40,000
90.000
170.000
On 10.12.2022, the company made a bonus issue. 10 shares were issued for
in such a way as to maximise the retained profits.
The double entry reflecting this share issue is which of the following:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Computations

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Subject-accounting
#21During the year, Gilbert company issued 4,000 shares with P100 par value in connection with ashare dividend. The market value per share on the date of declaration was P150. Theshareholders’ equity before issuance of the share dividend was as follows:Share capital, P100 par, 20,000 shares outstanding 2,000,000Share premium 3,000,000Retained earnings 1,500,0009What is the retained earnings balance immediately after the share dividend? 1,100,000 pls provide correct solution for the given answer
Question 1 The following information relates to a company listed on Luse- Mungwi PLC ZMK Issued share capital (1000 shares) Share premium. Reserves. Share holders funds. 6% Irredeemable Debentures. 9% Redeemable Debentures. Bank loan. Total Long Term Liabilities. Million 4 000 2 600 290 6,890 2,800 2,900 1 000 6 700 The current cum interest market value per k100 units is k103 and k105 fir the 6% and 9% Debentures respectively. The 9% Debenture is redeemable at par in 10 years time. The bank loan bears interest rate of 2% above the base rate (current base rate is 15%). The current ex-div market price of shares is k1, 100 and a dividend of K100 per share which is expected to grow at a rate of 5% per year has just been paid. The effective corporation tax rate for Mungwi is 30%. Required: A) Calculate the effective after tax weighted Average Cost of Capital (WACC) fir Mungwi PLC
Before Riverbed Ltd. engages in the treasury share transactions listed below, its general ledger reflects, among others, the following account balances (par value is £30 per share). Share Premium-Ordinary Share Capital-Ordinary £91,700 £269,400 Retained Earnings (a) Bought 390 treasury shares at £39 per share. (b) Bought 300 treasury shares at £45 per share. (c) Sold 350 treasury shares at £41 per share. (d) Sold 100 treasury shares at £37 per share. £81,900 Record the treasury share transactions (given below) under the cost method of handling treasury shares; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Star Ltd. presents the following information from the Statement of Financial Position: Equity £ Capital (120, 000 shares of £1 120,000 each) Retained Profits Share premium Total Equity 22,000 50,000 192,000 Star Ltd. issues 20, 000 ordinary shares for a price of £2. Considering the previous information and the economic transaction of issuing ordinary shares, which of the following statements is correct? O a. The company increases cash in £20,000 and share premium decreases in the same amount. O b. The company decreases cash in £40,000 and total equity remains unchanged. O c. The company increases cash in £40,000 and equity increases in the same amount. O d. None of the answers is true.