(a)[4]
Explain two reasons why a bonus issue of shares may be made.
(b)[2]
Calculate how many bonus shares were issued on 1 July 2020.
(c)[4]
Prepare the journal entry that records the bonus issue on 1 July 2020. A narrative must be included.
(d)[3]
Identify three factors that company directors should take into account when deciding on the size of a proposed dividend.
(e)[2]
Calculate the size of the proposed dividend.