Problem
The capital accounts of Integrity Company on December 31, 2021 are as follows:
1. Ordinary shares, P50 par; 100,000 shares issued and outstanding - P5,000,000
2. Ordinary share premium - P1,500,000
3. Retained earnings - 2,200,000
The company's ordinary shares are currently selling at P60.
a) Assuming a 3-for-2 share split is declared and issued, how much are the outstanding shares?
b) Assuming a 10% bonus issue is declared and issued, how much is the amount debited to retained earnings?
c) Assuming a 40% bonus issue is declared and issued, how much is the amount debited to retained earnings?