9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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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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