At 1 January 20x6, a company’s capital structure was as follows: $ Ordinary share capital2,000,000 shares of 50c each 1,000,000 Share premium account 1,400,000 In January 20x6 the company issued 1,000,000 shares at $1.40 each. In September 20x6 the company made a bonus issue of 1 share for every 3 held using the share premium account. What were the balances on the company’s share capital and share premium accounts after these transactions?
A.
Share capital Share premium $ $ 4,000,000 800,000
B.
Share capital Share premium $ $ 3,200,000 600,000
C.
Share capital Share premium $ $ 2,000,000 1,800,000
D.
Share capital Share premium $ $ 2,000,000 1,300,000