Cloud Ltd. presents the following Equity in the Statement of Financial Position on 30th July 2021:...
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Cloud Ltd. presents the following Equity in the Statement of Financial Position on 30th July 2021: Share Capital of 120, 000 shares (£1 each) and share premium of £22, 000. On that date, the company decides to obtain funding issuing 1 for 3 ordinary shares with nominal value of £1 and a price of £2.5. After considering the share issue, which of the following statements is correct? O a. The company issues 40, 000 shares. Share premium increases in £60, 000 and share capital increases in the same amount. O b. The company increases share premium in £60, 000 but cash not affected by this economi transaction. O c. The company issues 40, 000 shares and share premium increases by £60, 000. O d. None of the answers is true. Cloud Ltd. presents the following Equity in the Statement of Financial Position on 30th July 2021: Share Capital of 120, 000 shares (£1 each) and share premium of £22, 000. On that date, the company decides to obtain funding issuing 1 for 3 ordinary shares with nominal value of £1 and a price of £2.5. After considering the share issue, which of the following statements is correct? O a. The company issues 40, 000 shares. Share premium increases in £60, 000 and share capital increases in the same amount. O b. The company increases share premium in £60, 000 but cash not affected by this economi transaction. O c. The company issues 40, 000 shares and share premium increases by £60, 000. O d. None of the answers is true.
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With the transaction Total Number of shares issued 12000... View the full answer
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