Red mama Company has 100,000 shares of P10 par ordinary share outstanding. In declaring and distributing...

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Red mama Company has 100,000 shares of P10 par ordinary share 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 fractional share warrants. Subsequently, 80% of the fractional share warrants were turned in for full shares. REQUIREMENT: Journal entries to record the foregoing transactions. Red mama Company has 100,000 shares of P10 par ordinary share 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 fractional share warrants. Subsequently, 80% of the fractional share warrants were turned in for full shares. REQUIREMENT: Journal entries to record the foregoing transactions.

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To record the transactions described the following journal entries need to be made 1 Initial issu... View the full answer