Prepare the relevant journal entries to record the bonus

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Question - On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million ordinary shares with a par value of $1.60 each. The company also had a retained earnings balance of $121.6 million, a revaluation reserve balance of $5.9 million, and a share premium balance of $16.4 million. On May 1, 2021, the entity made a two for three bonus issue of shares, sparing retained earnings as much as possible. The entity reported profit after tax of $17.5 million for 2020 and $24.1 million for 2021.

Required -

Prepare the relevant journal entries to record the bonus issue of shares.

Determine the EPS for 2021.

Determine the original and restated EPS for 2020.

Reference no: EM133180651

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