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When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings reported in December 2024: New Securities Issues Equity American Materials Transfer Corporation (AMTC)-100 million common shares, $0.001 par, priced at $14.276 each through underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Company, according to a syndicate official Proactive Solutions Incorporated (PSI)-Offering of 9 million common shares, $0.01 par, was priced at $15.60 a share via lead manager Stanley Brothers, Incorporated, according to a syndicate official. Required: Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.

When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings reported in December 2024: New Securities Issues Equity American Materials Transfer Corporation (AMTC)-100 million common shares, $0.001 par, priced at $14.276 each through underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Company, according to a syndicate official Proactive Solutions Incorporated (PSI)-Offering of 9 million common shares, $0.01 par, was priced at $15.60 a share via lead manager Stanley Brothers, Incorporated, according to a syndicate official. Required: Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.

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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When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings reported in December 2024: New Securities Issues Equity American Materials Transfer Corporation (AMTC)-10.0 million common shares. $0.001 par, priced at $14 276 each through underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Company, according to a syndicate official Proactive Solutions Incorporated (PSI)-Offering of 9 million common shares, $0.01 par, was priced at $15.60 a share via lead manager Stanley Brothers, Incorporated, according to a syndicate official. Check Required: Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. View transaction list
Transcribed Image Text:When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings reported in December 2024: New Securities Issues Equity American Materials Transfer Corporation (AMTC)-10.0 million common shares. $0.001 par, priced at $14 276 each through underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Company, according to a syndicate official Proactive Solutions Incorporated (PSI)-Offering of 9 million common shares, $0.01 par, was priced at $15.60 a share via lead manager Stanley Brothers, Incorporated, according to a syndicate official. Check Required: Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. View transaction list
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