XYZ SAOG has in issue 5 million, RO 1 equity share. The company decided to make a bonus issue in the ratio of2 for 5 shares held. Prior to issue of bonus the company had Share premium of OMR 2,500,000. Which of thefollowing journal entry is Correct in respect of issuing bonus shares?Debit Share premium OMR 2,000,000 Credit Share Capital OMR 2,000,000O b. Debit Share capital OMR 2,500,000 Credit Share premium OMR 2,500,000O a.O c.Debit Share capital OMR 7,000,000 Credit Share premium OMR 7,000,000O d. Debit Share premium OMR 500,000 Credit Share Capital OMR 500,000Clear my choice

Book value per share = (No. of shares x par value per share + share premium) / no. of share =…

XYZ SAOG has in issue 5 million, RO 1 equity share. The company decided to make a bonus issue in the ratio of 2 for 5 shares held. Prior to issue of bonus the company had Share premium of OMR 2,500,000. Which of the following journal entry is Correct in respect of issuing bonus shares? O a. Debit Share premium OMR 2,000,000 Credit Share Capital OMR 2,000,000 O b. Debit Share capital OMR 2,500,000 Credit Share premium OMR 2,500,000 O c. Debit Share capital OMR 7,000,000 Credit Share premium OMR 7,000,000 O d. Debit Share premium OMR 500,000 Credit Share Capital OMR 500,000 Clear my choice

XYZ SAOG has in issue 5 million, RO 1 equity share. The company decided to make a bonus issue in the ratio of 2 for 5 shares held. Prior to issue of bonus the company had Share premium of OMR 2,500,000. Which of the following journal entry is Correct in respect of issuing bonus shares? O a. Debit Share premium OMR 2,000,000 Credit Share Capital OMR 2,000,000 O b. Debit Share capital OMR 2,500,000 Credit Share premium OMR 2,500,000 O c. Debit Share capital OMR 7,000,000 Credit Share premium OMR 7,000,000 O d. Debit Share premium OMR 500,000 Credit Share Capital OMR 500,000 Clear my choice

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...

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A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting journal entry would include which of the following? A. a credit to common stock B. a credit to cash C. a debit to paid-in capital in excess of preferred stock D. a debit to cash