Use the Data Below to Calculate MNB Ltd's Share Issue

question 8

Multiple Choice

Use the data below to calculate MNB Ltd's share issue made in 2014.
Equity balance (01/07/2014) - $690,000
Equity balance (30/06/2015) - $1,070,000
Retained Earnings (30/06/2015) - $230,000
There were no dividends declared in the current year and no other reserve accounts.

• A) $610,000
• B) $150,000
• C) $460,000
• D) $380,000

---

Definitions:

Market Rate

The current price or rate at which a good or service can be bought or sold in a given market.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accrued interest from previous periods.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a pre-specified price.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may not necessarily align with the calendar year.