Facebook Inc. (now Meta Platforms Inc.) issued 421.2 million class A common shares for $38 per share, on average, in its IPO on 5/18/2012. The par value of the stock was$0.000006 per share. Assume Facebook kept exactly $16 billion of the proceeds from the issue, with the rest being spent on stock issue costs.Record Facebook's entry for the issue of the shares. NOTE: Round dollar amounts to the nearest thousands of dollars.

Now, let's record the journal entry:Date: 5/18/20121. Dr Cash (Total proceeds)…

Answered: Facebook Inc. (now Meta Platforms Inc.)…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 4CP

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On April 27, 2018, DocuSign, a California company that provides technology to enable digital signatures on important documents, conducted its initial public offering (IPO) of common stock. In the primary market the company's shares were priced at $29 per share, but after one day of trading on the Nasdaq, the share price closed at $39.73. The company sold 21.7 million shares int the offering. a. To what extent (in dollars and on a percentage basis) was DocuSign's stock underpriced in its IPO? b. How much cash (before deducting fees to investment banks) did DocuSign raise? How much more would it have raised if the shares had not been underpriced?
At December 31, 2015, the balance sheet of Meca International included the following shareholders’ equity accounts: Shareholders’ Equity ($ in millions) Common stock, 60 million shares at $1 par $ 60 Paid-in capital—excess of par 300 Retained earnings 410 Required: Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactions: 1. On February 12, 2016, Meca reacquired 1 million common shares at $13 per share. 2. On June 9, 2017, Meca reacquired 2 million common shares at $10 per share. 3. On May 25, 2018, Meca sold 2 million treasury shares at $15 per share—determine cost as the weightedaverage cost of treasury shares. 4. For the previous transaction, assume Meca determines the cost of treasury shares by the FIFO method.
Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of $0.01 per share and was sold for cash at par. The journal entry to record this transaction would O a. Debit Cash $10,000, credit Common stock $100, and credit Paid-in capital $9,900. O b. Debit Paid-in capital $9,900, and credit Common stock $9,900 O c. Credit Cash $10,000 and debit Common stock $10,000 O d. Debit Cash $100 and credit Common stock $100.
Match Group went public in November 2018. The company sold 19,833,333 shares at $15.2 per share. The underwriting spread was $2.26 a share, and the direct expenses were $0.37 a share. a. What was the percentage underwriting spread? (Enter your answer as a percent rounded to 1 decimal place.) b. How much did the company raise after all expenses? (Enter your answer in dollars not millions. Round your answer to the nearest dollar.) c. On its first day of trading the stock closed at $19.54. Calculate the total dollar cost of underpricing. (Enter your answer in dollars not millions. Round your answer to the nearest dollar.)
If Frank Corporation sells 100,000 shares of its new $1 par value common stock to investors for $1 per share on June 1, 2011, the required journal entry would require: A debit to? A credit to?
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Check Match Group went public in November 2018. The company sold 19,833,333 shares at $15.2 per share. The underwriting spread was $2.26 a share, and the direct expenses were $0.37 a share. a. What was the percentage underwriting spread? (Enter your answer as a percent rounded to 1 decimal place.) Underwriting spread percentage b. How much did the company raise after all expenses? (Enter your answer in dollars not millions. Round your answer to the nearest dollar.) Company raised C. On its first day of trading the stock closed at $19.54. Calculate the total dollar cost of underpricing. (Enter your answer in dollars not millions. Round your answer to the nearest dollar.) < Prev 4 of 8 Next search
Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of $0.01 per share and was sold for cash at par. The journal entry to record this transaction would a. Debit Cash $100 and credit Common stock $100. b. Credit Cash $10,000 and debit Common stock $10,000 c. Debit Cash $10,000, credit Common stock $100, and credit Paid-in capital $9,900. d. Debit Paid-in capital $9,900, and credit Common stock $9,900
On April 2, 2011, Caesar Corporation’s BOD declared a 15% stock dividend for stockholders on record on August 15, 2011, and to be distributable on August 30, 2011. There were 420,000 issued and 400,000 outstanding ordinary shares, with USD50 par value. The market price per share was USD90 on April 2, 2011, USD95 on August 15, 2011, and USD75 on August 30, 2011. Compute the amount to be deducted from Retained Earnings to cover the 15% stock dividend.
Sakura Co. was established on January 1, 2011. On January 1, 2011, Sakura issued 100, 000 common shares for $500,000. The par value of each share is $1. On July 15, Sakura purchased back 2,000 of its own common shares at $6 each. On December 31, 2011, the stock market price of Sakura's common shares was $9 each. What is the balance of Sakura's common stock account on Dec 31, 2011?
In 2012, Dave Inc. issued 300,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January 2013, Dave Inc., repurchased 30,000 shares at $30 per share. Assume these are the only stock transactions the company has ever had. Required: A. Prepare the journal entry to record the purchase of treasury stock by the cost method. B. 11,000 shares of treasury stock are reissued at $33 per share. Prepare the journal entry to record the reissuance using the cost method.
Instructions: Compute the basic and diluted earnings per share for XYZ for 2024. Round to two decimal places. Show all computations.

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