Red Mama Company 100, 000 shares of P 10 par ordinary shares outstanding. In declaring and distributing a 50% bonus issue, Red Mama initially issued only 45,000 new shares; the other shares were not issued because some investors did not own Red Mama shares in even multiples of 2. To these shareholders, Red Mama issued a fractional share warrants. Subsequently, 80% of the fractional share warrants were turned in for full shares. REQUIRED: Journalize entries to record the foregoing.
Red Mama Company 100, 000 shares of P 10 par ordinary shares outstanding. In declaring and distributing a 50% bonus issue, Red Mama initially issued only 45,000 new shares; the other shares were not issued because some investors did not own Red Mama shares in even multiples of 2. To these shareholders, Red Mama issued a fractional share warrants. Subsequently, 80% of the fractional share warrants were turned in for full shares. REQUIRED: Journalize entries to record the foregoing.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 4RE: Sun Corporation issues 500 shares of 8 par common stock for a patent. The stock is currently selling...
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