Concept explainers
Stock issued for cash; Wright Medical Group
• LO18–4
Real World Financials
The following is a news item reported by Reuters:
WASHINGTON, Jan 29 (Reuters)—Wright Medical Group, a maker of reconstructive implants for knees and hips, on Tuesday filed to sell 3 million shares of common stock.
In a filing with the U.S. Securities and Exchange Commission, it said it plans to use the proceeds from the offering for general corporate purposes,
Wright shares closed at $17.15 on Nasdaq.
The common stock of Wright Medical Group has a par of $0.01 per share.
Required:
Prepare the
Want to see the full answer?
Check out a sample textbook solutionChapter 18 Solutions
INTERMEDIATE ACCOUNTING <CUSTOM LL>
Additional Business Textbook Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Financial Accounting, Student Value Edition (5th Edition)
FUNDAMENTALS OF CORPORATE FINANCE
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
- Question #2arrow_forwardkayla M Benloss 6:53 PM Professor we can't see the problemm Shenika Tramaine Small 6:54 PM Professor, the question please Adela Durham 6:54 PM Example Exercise: Equity Investments- Less Than 20% Ownership (1 of 2) •On September 1, 1,500 shares of Monroe Company's common stock are acquired at a price of $24 per share plus a $40 brokerage commission. On October 14, a $0.60-per-share dividend was received on the Monroe Company stock. On November 11, 750 shares (half) of Monroe Company stock were sold for $20 per share less a $45 brokerage commission. At the end of the accounting period on December 31, the fair value of Monroe Company's stock is $27 per share. Monroe Company has 175,000 shares of commort stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method placed it in the chat Let me know if you can see it Shenika Tranmaine Small 6:55 PM yes we canarrow_forwardP 12-9 Securities held-to-maturity; trading securities and equity investments LO12-1, LO12-2, LO12-3,LO12-5 Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2024 and the first month of 2025. The only securities held by Amalgamated at October 1, 2024 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2024 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31. 2024 Oct. 18 31 Nov. 1 1 Dec. 1 20 21 23 29 31 2025 Jan. 7 Purchased 2 million shares of Millwork Ventures Company common stock for $58 million. Millwork has a total of 30 million shares issued. Received semiannual interest of $1.5 million from the Kansas Abstractors bonds. Purchased 10% bonds of Holistic…arrow_forward
- Financial Management CH 16 HW Please show work. Question 8arrow_forwardPlz asaparrow_forwardBE 12-10 Equity securities LO12-5 Adams Industries holds 40,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31,| 2021, and December 31, 2022, the market value of the stock is $95 and $100 per share, respectively. What is the appropriate reporting category for this investment and at what amount will it be reported in the 2022 balance sheet? BE 12-11 Equity investments and dividends LO12-5 Turner Company owns 10% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have on Turner's 2021 financial statements? Explain the reasoning for this effect. BE 12-12 Equity method and dividends LO12-6 Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have on Turner's…arrow_forward
- O Dr. Preferred Shares $137,500 Dr. Retained earnings $82,500; Cr. Cash $220,000 Question 12 What is a "warrant"? O A contract in which one party commits up front to buy or sell something at a defined price at a defined future date. A contract in which one party commits up front to buy or sell commonly traded items at a defined price and maturity date. A contact that gives the right, but not the obligation, to buy a share at a specified price over a specified period of time. A contract in which two parties agree to exchange cash flows (e.g. interest cash flows). Question 13 1 3019 as a signing bonus. The options vest oarrow_forwardPlease do not give solution in image format thankuarrow_forwardProblem 1 about Trading Securities Bank National investment manager invests some of its financial resources in securities trading. During the last quarter of 2018, the following transactions took place in connection with trading securities. Nov. 5. Buy 200 shares of M Company's ordinary shares for $ 86 per share.Nov 19. Buy 300 shares of Company P preferred stock at $ 63 per share.Dec 29 Sold 100 shares of Company M's ordinary shares for $ 89 per share.Dec. 15. Buy 400 shares of T Company common stock for $ 37 per shareDec 17 Company P shares are sold at preference shares at $ 62 per share As of December 31, 2010, the stock market value was as follows:M, $ 87 per share;P, $ 61 per share; andT, $ 37.25 per share.The bank did not have any trading effects at the beginning of the last quarter of 2010. Requested:1. Prepare a journal entry to record the information.2. Show what the bank reported in the 2010 fourth quarter profit and loss statement for these trading securities.3. Show how the…arrow_forward
- Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning