Question
Capital and reserves of a company appear as shown below. The directors of the company agreed to issue bonus shares of one for every five
Capital and reserves of a company appear as shown below. The directors of the company agreed to issue bonus shares of one for every five Common shares. The Journal entry to record the bonus issue will be:
Common shares of 100 baiza - RO 900,000
Share premium account RO 180,000
Retained earnings RO 160,500
A.
Dr Share premium RO160,000, Cr Share Capital RO160,000
B.
Dr Share Premium RO120,000, Dr Retained Earnings RO40,000, Cr Share Capital RO160,000
C.
Dr Retained Earnings RO160,000, Cr Share Capital RO160,000
D.
Dr Share Premium RO180,000, Cr Share Capital RO180,000
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Strategic Management Theory And Cases An Integrated Approach
Authors: Charles W. L. Hill, Melissa A. Schilling, Gareth R. Jones
13th Edition
0357033841, 978-0357033845
