Find out effect on the accounting equation

Reference no: EM13987571

Explain the effect on the accounting equation of each of the following transactions:

(a) At the start of Year 1, Bright Ltd issues 200,000 shares at nominal value 25 pence per share, receiving £50,000 in cash.

(b) At the end of Year 2, Bright Ltd issues a further 100,000 shares to an investor at an agreed price of 75 pence per share, receiving £75,000 in cash.

(c) At the end of Year 3 the directors of Bright Ltd obtain a market value of £90,000 for a company property which originally cost £70,000. They wish to record this in the statement of financial position (balance sheet).

Reference no: EM13987571

Questions Cloud

Reported financial statements : Suppose the factory building in question B12.4 was valued by the professional expert at £240,000. What effect would this information have on the reported financial statements?

Find the total force exerted by the oil : A barrel, three-fourths-full of oil, is lying on its side. If each end is circular, 10 feet in diameter, find the total force exerted by the oil against one end of the barrel. Assume that the density of the oil is 50 pounds per cubic foot.

Determining the reported financial statements : The recent report of a professional valuer indicated that the property is valued at £380,000 on an open market basis for its existing use. Explain the effect this information will have on the reported financial statements.

What is the net amount of heat this person could radiate : What is the net amount of heat this person could radiate per second into a room at 19.0 oC (about 66.2oF) if his skin's surface temperature is 31.0oC? (At such temperatures, nearly all the heat is infrared radiation, for which the body's emissivity..

Find out effect on the accounting equation : Explain the effect on the accounting equation of each of the following transactions: (a) At the start of Year 1, Bright Ltd issues 200,000 shares at nominal value 25 pence per share, receiving £50,000 in cash.

Describing a network management system : "Write a two-and-a-half-page paper describing a network management system identified on a currently-dated vendor website (Cisco, HP, Sun, SolarWinds, CA, Network General, IBM, etc.). "

Required prepare the companys cash budget for november : The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month. Required Prepare the company's cash budget for November in good form.

Reconciliation of movements in equity : 1. What is the purpose of the reconciliation of movements in equity? 2. How do the directors report their recommended dividend for the financial period, to be agreed at the shareholders' meeting?

What is maximum possible speed of ball at the top of loop : A baseball m = 0.44 kg is spun vertically on a massless string of length L = 0.79 m. The string can only support a tension of Tmax = 7.6 N before it will break. What is the maximum possible speed of the ball at the top of the loop, in meters per se..

User Account

All Pages