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Please tell me specific solution of share premium! l really need the process and give me the reason. Thank you

The following table shows the figures for equity from the Statement of Financial Position (Balance Sheet) of the Pembroke Group plc as at 31st December 2010. .......................................................................$,000 Ordinary Shares of $1 each............................300 Share premium.................................................60 Retained earnings...........................................128 ................................................................................ Total.................................................................488

The directors are proposing the following transactions: 1) 1st January 2011 a 1-for-5 rights issue of ordinary shares at a price of $1.80 2) 31st December 2011 a bonus of 200,000 $1 ordinary shares which utilises the minimum amount of retained earnings.

The directors estimate that the profits for the year ended 31st December 2011 will represent Earnings per Share of 5p on the shares in issue during the year. A dividend will be paid which will result in dividend cover of 3 times.

Set out the capital and reserves section of the balance sheet as at 31st December 2011.

100 000 25p ordinary shares. Share premium. Revaluation reserve.. Retained profit.. E .25 000 .. 15 000 ..80 000 ..140 000 260 000 The current market price of a share is 6,75. The directors undertake a rights issue 1 for 5 followed by bonus issue of 5 new ordinary shares for every t Calculate capital and reserves section of the balance sheet after the issues. 420 000 25p ordinary shares Share premium Revaluation reserve Retained profit 105 000 70 000 80 000 140 000 395 000 420 000 25p ordinary shares Share premium Revaluation reserve Retained profit 105 000 145 000 80 000 140 000 470 000 30 000 145 000 120 000 25p ordinary shares Share premium Revaluation reserve Retained profit 80 000 140 000 395.000 100 000 25p ordinary shares. Share premium. Revaluation reserve.. Retained profit.. E .25 000 .. 15 000 ..80 000 ..140 000 260 000 The current market price of a share is 6,75. The directors undertake a rights issue 1 for 5 followed by bonus issue of 5 new ordinary shares for every t Calculate capital and reserves section of the balance sheet after the issues. 420 000 25p ordinary shares Share premium Revaluation reserve Retained profit 105 000 70 000 80 000 140 000 395 000 420 000 25p ordinary shares Share premium Revaluation reserve Retained profit 105 000 145 000 80 000 140 000 470 000 30 000 145 000 120 000 25p ordinary shares Share premium Revaluation reserve Retained profit 80 000 140 000 395.000

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