CIMAPRA17-BA3-1 Exam - Topic 3 Question 106 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 106
Topic #: 3

[All CIMAPRA17-BA3-1 Questions]

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?

Show Suggested Answer

Suggested Answer: A, C, F

by Alethea at Jan 26, 2025, 10:55 PM

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Cordelia

8 months ago

I didn't expect them to issue that many shares!

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Magdalene

8 months ago

Wait, how does this affect existing shares?

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Claudio

8 months ago

I think the new total should be higher than that.

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Yasuko

8 months ago

That adds $120,000 to equity!

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Shawna

9 months ago

The company issued 100,000 shares at $1.20 each.

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Cristy

9 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.

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Doyle

9 months 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.

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Rasheeda

9 months 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.

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Justine

9 months 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.

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Dyan

9 months 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.

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Francesco

9 months 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?

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Gracia

9 months ago

This looks straightforward enough. I'll just need to add the new share capital and share premium to the existing balances.

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Josephine

10 months 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.

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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?

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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!

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Reynalda

1 year ago

Yes, D is definitely the right option. It's straightforward once you understand the process.

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Sharen

1 year ago

Agreed, D seems like the logical choice here. Let's go with that.

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Margret

1 year ago

I think D is the correct answer too. It's all about following the numbers.

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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!

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Dewitt

1 year ago

User 3: I'm going with C, just to be different.

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Cherry

1 year ago

User 2: I'm leaning towards B, but I'm not 100% sure.

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Teddy

1 year ago

User 1: I think the answer is A.

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Maile

1 year 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).

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Amalia

1 year ago

That makes sense. B is the correct answer.

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Daniela

1 year ago

Yes, the share capital should increase by $120,000 and the share premium should increase by $30,000.

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Denise

1 year ago

I agree, the answer is B.

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Arlette

1 year 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.

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