Question
Rekan CRA Co. STATEMENT OF FINANCIAL POSITION of the Milton Keynes Co. As at 31/12/20X3 (EXTRACT) Share capital (50c) $10,000 Share premium. $7,000 Retained earnings.
Rekan CRA Co.
STATEMENT OF FINANCIAL POSITION of the Milton Keynes Co. As at 31/12/20X3 (EXTRACT)
Share capital (50c) $10,000
Share premium. $7,000
Retained earnings. $8,000
25,000
Rekan CRA Co. decided on a bonus issue of shares of 1 for 4 and will use the share premium account for this purpose.
You are Required
What is the double entry to record the bonus issue of shares and what is the adjusted financial position extract after the bonus issue?
Step by Step Solution
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Step: 1
Before the bonus issue the total number of shares was 1000005 20000 shares As a result ...
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
