balance sheet accounts of the rights issue
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Free InquiryThe balance sheet of Fahmy plc. shows the following information in its assets and liability and equity section:
Assets |
$ |
Non-current assets |
800,000 |
Current assets |
200,000 |
Total Assets |
1,000,000 |
Liabilities and Equity |
|
Total Liabilities |
200,000 |
Equity: |
|
Share capital : ordinary shares of $ 5 each |
500,000 |
Reserves : Share premium |
200,000 |
Reserves : Retained earnings |
100,000 |
Total Liabilities and Equity |
1,000,000 |
Fahmy Plc. Needs to raise more cash and decided to make 1 for 4 rights issue, fully paid in cash at a price $10 per share.
Required:
Show by using detailed workings the effect on the balance sheet accounts of the rights issue. EFFICIENTLY ORDER A 5 STAR COLLEGE TERM PAPER NOW Help do my online classes. 100%
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