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Major Sports plans to raise $5,450,000 in an initial public offering of its common stock. The company is considering three options: a. Issue 109,000 shares of $1 par value common stock for $50 per share. b. Issue 545,000 shares of $1 par value common stock for $10 per share. c. Issue 1,090,000 shares of $1 par value common stock for $5 per share. Required: Record the issuance of common stock for each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Major Sports plans to raise $5,450,000 in an initial public offering of its common stock. The company is considering three options: a. Issue 109,000 shares of $1 par value common stock for $50 per share. b. Issue 545,000 shares of $1 par value common stock for $10 per share. c. Issue 1,090,000 shares of $1 par value common stock for $5 per share. Required: Record the issuance of common stock for each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 10-4 (Algo) Record the issuance of common stock (LO10-2) Major Sports plans to raise $5,450,000 in an initial public offering of its common stock. The company is considering three options: a. Issue 109,000 shares of $1 par value common stock for $50 per share. b. Issue 545,000 shares of $1 par value common stock for $10 per share. c. Issue 1,090,000 shares of $1 par value common stock for $5 per share. Required: Record the issuance of common stock for each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 2 3 Transaction a b с Cash Common Stock Additional Paid-in Capital Cash Answer is complete but not entirely correct. General Journal Common Stock Additional Paid-in Capital Cash Common Stock Additional Paid-in Capital ✔ ››› ››› ✓ Debit 5,450,000✔ 5,450,000✔ 5.450,000 ✓ Credit 109,000✔ 0x 545,000✔ 0x 1,090,000✔ 0X
Transcribed Image Text:Exercise 10-4 (Algo) Record the issuance of common stock (LO10-2) Major Sports plans to raise $5,450,000 in an initial public offering of its common stock. The company is considering three options: a. Issue 109,000 shares of $1 par value common stock for $50 per share. b. Issue 545,000 shares of $1 par value common stock for $10 per share. c. Issue 1,090,000 shares of $1 par value common stock for $5 per share. Required: Record the issuance of common stock for each option. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 2 3 Transaction a b с Cash Common Stock Additional Paid-in Capital Cash Answer is complete but not entirely correct. General Journal Common Stock Additional Paid-in Capital Cash Common Stock Additional Paid-in Capital ✔ ››› ››› ✓ Debit 5,450,000✔ 5,450,000✔ 5.450,000 ✓ Credit 109,000✔ 0x 545,000✔ 0x 1,090,000✔ 0X
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