Answer Posted / h.r. sreepada bhagi
Bonus Shares are issued free of cost to the existing
shareholders at a certain ration of their present
shareholding. Since it's issued free of cost the question of
premium does not arise.
However rights issue can be at premium over the face value
of the share.
| Is This Answer Correct ? | 13 Yes | 3 No |
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Richman Corporation has 120,000 shares of $5 par value common stock outstanding. It declared a 10% stock dividend on June 1 when the market price per share was $12. The shares were issued on June 30. Instructions: Prepare the necessary entries for the declaration and payment of the stock dividend.
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