1. What areshare splits and what accounting entries are necessary when a sharesplit is undertaken?
2. Arepreference shares debt or equity? Briefly provide yourreasoning?
3. On 1 July 2019 Campbell Ltd provided 1million options to its chief executive officer. The options werevalued at $1.20 each and allowed the chief executive officer toacquire shares in Campbell Ltd for $8.40 each. The chief executiveofficer is not permitted to exercise the options before 30 June2021 but may then exercise them at any time between 1 July 2021 and30 June 2022. The market price of the Campbell Ltd shares on 1 July2019 was $9.75.
On 31 December 2021, the share price reaches $10.78 and thechief executive officer decides to exercise her options and acquireshares in Campbell Ltd.
Required: Account for the issue and exercise ofoptions in Campbell Ltd
