Question
Joey Ltd currently has 125,000 ordinary shares issued for $2.25 each which are fully paid. The directors decide to make a 1-for-5 bonus issue of
Joey Ltd currently has 125,000 ordinary shares issued for $2.25 each which are fully paid. The directors decide to make a 1-for-5 bonus issue of shares to the existing shareholders using the company's retained earnings. The bonus shares will be issued at a value of $2.75 each. The correct journal entry to record the issue of the bonus shares is:
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Auditing Cases
Authors: Frank A. Buckless, Mark. S. Beasley, Steven M. Glover, Douglas F. Prawitt
1st Edition
978-0130800015
