The following information is available for a limited company for a financial year ended on 31 December.
On 30 June, there was a bonus issue of 20000 ordinary shares of $1 each.
On 31 December, the following decisions were made.
1 The buildings are to be revalued at $\$ 250000$. These had cost $\$ 200000$ and the accumulated depreciation was $50000.
2 There is to be a transfer of $5000 to the general reserve.
What is the total equity on 31 December after these adjustments have been made?
1 )
$588500
2 )
$613500
3 )
$618500
$638500
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