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On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million ordinary shares with a p
Posted: Sat May 07, 2022 8:11 pm
by answerhappygod
- On January 1 2021 The Start Of The Current Financial Year Tubble Ltd Had In Issue 36 Million Ordinary Shares With A P 1 (34.51 KiB) Viewed 34 times
On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million ordinary shares with a par value of $1.60 each. The company also had a retained earnings balance of $121.6 million, a revaluation reserve balance of $5.9 million, and a share premium balance of $16,4 million On May 1, 2021, the entity made a two for three bonus issue of shares, sparing retained earnings as much as possible. The entity reported profit after tax of $17.5 million for 2020 and $24.1 million for 2021. Required: • Prepare the relevant journal entries to record the bonus issue of shares. • Determine the EPS for 2021. • Determine the original and restated EPS for 2020. Recommended time: 25 minutes