MENU
Refer to the exhibit.
A company has the following equity balances at the beginning of the year:
During the year the company issued 100,000 new shares at $1.20 each
What are the equity balances after this issue?
Suggested Answer: A, C, F
Get Premium CIMAPRA17-BA3-1 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
34 comments · newest first
CO
Cordelia
11 months ago
I didn't expect them to issue that many shares!
MA
Magdalene
11 months ago
Wait, how does this affect existing shares?
CL
Claudio
11 months ago
I think the new total should be higher than that.
YA
Yasuko
12 months ago
That adds $120,000 to equity!
SH
Shawna
12 months ago
The company issued 100,000 shares at $1.20 each.
CR
Cristy
12 months ago
I feel like I’ve seen this type of question before, but I’m uncertain if I should include any other adjustments to the equity balances.
DO
Doyle
1 year ago
I recall that we need to add the proceeds from the new shares to the existing equity, but I’m not clear on the exact figures.
RA
Rasheeda
1 year ago
I think the new shares will increase the equity, but I’m a bit confused about how to factor in the price per share.
JU
Justine
1 year ago
I remember we practiced a similar question about equity balances last week, but I’m not sure how to calculate the new total after the share issue.
DY
Dyan
1 year ago
No problem, I've got this. I'll just add the new share capital and share premium to the existing balances to get the updated equity totals.
FR
Francesco
1 year ago
Hmm, I'm a bit unsure about how to handle the share premium here. Do I need to calculate that separately or just add the total amount received?
GR
Gracia
1 year ago
This looks straightforward enough. I'll just need to add the new share capital and share premium to the existing balances.
JO
Josephine
1 year ago
Okay, let's think this through step-by-step. We need to update the equity balances based on the new share issue. I'll start by calculating the total amount received from the new shares.
TR
Tran
1 year ago
I'm going with D, but I have to admit, I'm a little distracted by that fancy image. It's like the exam committee is trying to hypnotize us or something. Where's the coffee?
OL
Olene
1 year ago
D is the way to go, no doubt about it. It's like solving a mathematical equation - you just have to follow the numbers and the logic. Easy peasy!
RE
Reynalda
1 year ago
Yes, D is definitely the right option. It's straightforward once you understand the process.
SH
Sharen
1 year ago
Agreed, D seems like the logical choice here. Let's go with that.
MA
Margret
1 year ago
I think D is the correct answer too. It's all about following the numbers.
GI
Giovanna
1 year ago
Hmm, this is a tricky one. I'm going to go with C just to keep the exam committee on their toes. Who knows, maybe they'll give me partial credit for thinking outside the box!
DE
Dewitt
1 year ago
User 3: I'm going with C, just to be different.
CH
Cherry
1 year ago
User 2: I'm leaning towards B, but I'm not 100% sure.
TE
Teddy
1 year ago
User 1: I think the answer is A.
MA
Maile
2 years ago
I think the answer is B. The share capital should increase by $120,000 (100,000 shares x $1.20) and the share premium should increase by $30,000 (100,000 shares x $0.30).
AM
Amalia
1 year ago
That makes sense. B is the correct answer.
DA
Daniela
1 year ago
Yes, the share capital should increase by $120,000 and the share premium should increase by $30,000.
DE
Denise
1 year ago
I agree, the answer is B.
AR
Arlette
2 years ago
The correct answer is D. The company issued 100,000 new shares at $1.20 each, so the share capital and share premium accounts should increase accordingly.
GL
Glen
1 year ago
D) D
AL
Alita
1 year ago
C) C
RI
Rikki
1 year ago
B) B
LA
Lai
1 year ago
A) A
KE
Keith
2 years ago
So, the answer must be A.
TA
Tamar
2 years ago
I agree with you, Keith. The company will have more equity with the new shares issued.
KE
Keith
2 years ago
I think the equity balances will increase after issuing new shares.