Statement of Changes in Equity

hkaur92

Hi everyone,

Was hoping if anybody could help with a question about issued share capital. It's probably a straight forward one but just wanted to satisfy myself as I don't have the answer to this question.

"A company had an issued share capital at 1 January 201X of £2,500,000 and each share has a nominal value of 50p.

During the year a share issue of 1,500,000 shares was made for £0.80 per share.

Complete the extract from the Statement of Changes in Equity below as at 31 December 201X."



Share capital £000 Share premium £000 Total equity £000

Balance at 1 January 201X
Issue of shares
Balance at 31 December 20X1

Many Thanks

CeeJaySix

Share capital will increase by 1.5m x 50p.
Share premium will increase by 1.5m x 30p (premium being the element of price paid that is >par).

I believe it's that simple without looking at the syllabus.

hkaur92

Thanks @CeeJaySix