Question
S Ltd has the following capital structure: 800,000 ordinary shares of 1 800,000 Share premium account 160,000 Retained earnings 320,000 Shareholders' equity 1,280,000 1,000,000 ordinary
S Ltd has the following capital structure:
| 800,000 ordinary shares of 1 | 800,000 |
| Share premium account | 160,000 |
| Retained earnings | 320,000 |
| Shareholders' equity | 1,280,000 |
1,000,000 ordinary shares of 1 1,000,000
Retained earnings 280,000
Shareholders' equity 1,280,000
- Explain TWO reasons why S Ltd may want to issue bonus shares.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
