On 1/1/2018, Ruya Inc. decided to increase its capital by one million dinars, by Incorporation JD...

 

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On 1/1/2018, Ruya Inc. decided to increase its capital by one million dinars, by Incorporation JD 900,000 from the voluntary reserve and JD 100,000 from retained earnings to the share capital. Following is the shareholders' equity at 1/1/2018 before the capital increase. Ruya Inc. Balance Sheet (partial) Stockholders' equity: Share in Capital Additional Paid in Capital (capital surplus) Compulsory reserve Optional reserve Retained Earnings Total Stockholders' equity Required: 4,000,000 1,500,000 2,500,000 1,750,000 140,000 9,890,000 1. Journalize the capital increase. 2. Prepare a stockholders' equity section after the capital increase 3. Determine how much shareholder receives as bonus shares for each share he owns. On 1/1/2018, Ruya Inc. decided to increase its capital by one million dinars, by Incorporation JD 900,000 from the voluntary reserve and JD 100,000 from retained earnings to the share capital. Following is the shareholders' equity at 1/1/2018 before the capital increase. Ruya Inc. Balance Sheet (partial) Stockholders' equity: Share in Capital Additional Paid in Capital (capital surplus) Compulsory reserve Optional reserve Retained Earnings Total Stockholders' equity Required: 4,000,000 1,500,000 2,500,000 1,750,000 140,000 9,890,000 1. Journalize the capital increase. 2. Prepare a stockholders' equity section after the capital increase 3. Determine how much shareholder receives as bonus shares for each share he owns.

Answer rating: 100% (QA)

1Journal entry for the capital increase Debit Share in Capital JD 1000000 Credit Voluntary reserve J... View the full answer