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On January 1, 2021, the start of the current financial year, Rubble Ltd had in issue 48 million ordinary shares with a par value
On January 1, 2021, the start of the current financial year, Rubble Ltd had in issue 48 million ordinary shares with a par value of $1.20 each. The company also had a retained earnings balance of $104.1 million, a revaluation reserve balance of $6.3 million, and a share premium balance of $19.8 million. On May 1, 2021, the entity made a three for five bonus issue of shares, sparing retained earnings as much as possible. The entity reported profit after tax of $18.2 million for 2020 and $21.6 million for 2021. Required: Prepare the relevant journal entries to record the bonus issue of shares. Determine the EPS for 2021. Determine the original and restated EPS for 2020.
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