FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:EXERCISE 7
The capital accounts for Red Stone Company on July 1,2020 are as follows:
Ordinary Share Capital, P 10 par, 100, 000 shares issued and outstanding
P 1,000,000
Share Premium
500,000
Retained Earnings
3,135,000
The company's ordinary shares are currently selling at P20.
REQUIRED:
Journalize the following independent transactions:
a.) A 10% bonus issue is declared and issued
b.) A 30% bonus issue is declared and issued
c.) A 2-for-l share split is declared and issued
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