Economics · Corporate Accounting
An entity, Taylor Co, issued 250,000 equity shares with a nominal value of $0.50 each and a share premium account balance of $100,000. What accounting entries are required if Taylor Co was to make a bonus issue of one share for every four held?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Debit Share capital $62,500; Credit Share premium $62,500
- 2Debit Share capital $31,250; Credit Share premium $31,250
- 3Debit Share premium $31,250; Credit Share capital $31,250✓
- 4Debit Share capital $62,500; Credit Share premium $62,500
Correct answer
Debit Share premium $31,250; Credit Share capital $31,250
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