On 1 July 2013, ABC Limited provided a total of 5 million options to three of its key executive managers. The options were valued at $0.50 each and allowed the executives to acquire ordinary shares in the company for $5.00 each. The options could be exercised by 30 June 2014, after which time they would lapse.On 5 July 2014, the directors offered to shareholders the rights to acquire additional shares in ABC Limited for $3.50 per share. The shares were to be fully paid on application and all applications had to be received by 1 September 2013. The total number of shares on offer through the rights issue was 10 million, with total expected subscriptions of $35 million. At the time of the rights issue, there were 25 million ordinary shares issued and fully paid up in the company.1.On 30 June 2014, the directors declared an ordinary dividend of $0.05 per share. The companyâs constitution gave them the power to make such a declaration legally binding.Provide the journal entries in the accounts of ABC Limited to record the event.
https://papertowriters.com/wp-content/uploads/2020/07/Writerspng-300x62.png 0 0 admin https://papertowriters.com/wp-content/uploads/2020/07/Writerspng-300x62.png admin2020-05-06 16:48:562020-05-06 16:48:56ACC -On 1 July 2013, ABC Limited provided a total of 5 million options