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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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