INTERMEDIATE ACCOUNTING

10th Edition

ISBN: 9781265246853

Author: SPICELAND

Publisher: PEARSON

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Textbook Question

Chapter 18, Problem 18.7E

Share issue costs; issuance

• LO18–4

ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11. Legal, promotional, and accounting services necessary to effect the sale cost $2 million.

Required:

1. Prepare the journal entry to record the issuance of the shares.

2. Explain how recording the share issue costs differs from the way debt issue costs are recorded.

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Chapter 18, Problem 18.6E

Chapter 18, Problem 18.8E

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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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