Make the journal entries to record the foregoing transaction

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Question - 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. Make the journal entries to record the foregoing transactions.

Reference no: EM133123296

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