When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet: Assume the following were among the equity offerings reported in December 2024: New Securities Issues Equity American Materials Transfer Corporation (AMTC)-7.5 million common shares, $0.001 par, priced at $14.708 each thre underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Company, according to a syndicate offic Proactive Solutions Incorporated (PSI)-Offering of 9 million common shares, $0.01 par, was priced at $16.40 a share 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.
When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet: Assume the following were among the equity offerings reported in December 2024: New Securities Issues Equity American Materials Transfer Corporation (AMTC)-7.5 million common shares, $0.001 par, priced at $14.708 each thre underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Company, according to a syndicate offic Proactive Solutions Incorporated (PSI)-Offering of 9 million common shares, $0.01 par, was priced at $16.40 a share 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject : Accounting
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)-7.5 million common shares, $0.001 par, priced at $14.708 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 $16.40 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.
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