Question
2.Janae Corporation has outstanding 10,000 shares of 10 par value ordinary shares and retained earnings of 500,000. If Janae declares a 2-for-1 share split when
2.Janae Corporation has outstanding 10,000 shares of 10 par value ordinary shares and retained earnings of 500,000. If Janae declares a 2-for-1 share split when the fair value of the shares is 85 per share, the entry includes:
A debit to Retained Earnings for 10,000.
A debit to cash for 85,000.
No entry is required for a share split.
A credit to Share PremiumOrdinary for 75,000.
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Accounting What The Numbers Mean
Authors: David Marshall, Wayne McManus, Daniel Viele
10th Edition
77729870, 9780077729875
