10th Edition

ISBN: 9781264518869

Author: SPICELAND

Publisher: MCG

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Textbook Question

Chapter 18, Problem 18.4E

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, working capital, research and development, and acquisitions. After the sale there will be about 31.5 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC filing.

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 journal entry to record the sale of the shares assuming the price existing when the announcement was made and ignoring share issue costs.

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Chapter 18, Problem 18.3E

Chapter 18, Problem 18.5E

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Chapter 18 Solutions

INTERMEDIATE ACCOUNTING

Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2Q Ch. 18 - Prob. 18.3Q Ch. 18 - Prob. 18.4Q Ch. 18 - Prob. 18.5Q Ch. 18 - Prob. 18.6Q Ch. 18 - Prob. 18.7Q Ch. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...

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Solution Summary: The author explains that common stock is the ordinary shares that a corporation issues to the investors in order to raise funds.

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