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.

Q: Hanson Co. issued 10,000 shares of its $5 par common stock for $15 a share. In addition, it incurred…

A: Journal entry for recording issuance of shares is Debit Cash and Credit Common Stock and Credit…

Q: ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11. Legal,…

A: Part 1: Journal entry to record the issuance of the shares:

Q: Grouper Corporation began operations on April 1 by issuing 54,000 shares of $5 par value common…

A: Common stock alludes to stock in a corporation held by people having the right to participate in the…

Q: Knicks Corporation was organized on January 1, 2018 with authorized capital of P 2,000,000, P 20 par…

A: Formula: Amount = 25 % shares subscribed x Each share issue price.

Q: On January 1, 2015, Visaries Corporation was established. On that day, it issued 200,000 shares at a…

A: Common stock par value = $ 10 Issued price = $ 15 Paid in capital in excess of par common stock =…

Q: On February 22, Stewart Corporation acquired 7,200 shares of the 200,000 outstanding shares of…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: During its first year of operations, Victory, Inc. entered into the following transactions relating…

A: Following is the authorised capital of victory inc. :   240,000 ordinary shares ,P10 par per share…

Q: Whispering Winds Corporation began operations on April 1 by issuing 59,500 shares of $5 par value…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: 000 shares of $10 par value common stock. As of December 31, 2020, 2,080,000 shares had been issued…

A: The difference between total deductions (including deductions directly related to carrying on any…

Q: Miami Heat Inc. began operations in January2017, and reported the following results for each of its…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the…

A: Retained earnings are the plowed back profits which are used to make disbursements, to pay…

Q: Skysong Inc. issues 500 shares of $ 10 par value common stock and 100 shares of $ 100 par value…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On September 12, 2,600 shares of Aspen Company are acquired at a price of $48.00 per share plus a…

A: 1. CALCULATION FOR PURCHASE OF INVESTMENT : = (2,600 X $48) + $130  = $124,930   2. CALCULATION OF…

Q: On 30 April, MBC Company issued 60 000 shares for $12 each, payable $4 on application, $4 on the…

A: Share Issued = 60,000 shares Share Subscribed = 60,000 - 10,000 = 50,000 shares  Share Application…

Q: On December 31, 2017, Dow Steel Corporation had 610,000 shares of common stock and 31,000 shares of…

A: Earnings per share refers to the earnings available for the each share of a shareholder. It is…

Q: Amel Corporation was organized on January 1, 2015, with an authorization of 1,200,000 shares of…

A: Every company raises finance by way of issue of shares. These can be ordinary shares or preference…

Q: Levi Co. is calculating earnings per share for inclusion in the annual report to share holders. The…

A: Diluted Earning Per Share: The diluted earnings per share (diluted EPS) of a corporation is…

Q: Debacle Company was organized on January 1, 2012. On that date, it issued 200,000 shares with P10…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: Charles Austin of the controller’s office of Skysong Corporation was given the assignment of…

A: Earnings per share is the amount of earnings attributable for each equity shareholder. These…

Q: On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a…

A: Owner equity means the amount that belong to the owner of the business.  Any profit will increase…

Q: On July 1, TruData Company issues 11,400 shares of its common stock with a $5 par value and a $40…

A: Goodwill at the time of acquisition means amount paid for acquisition which is over and above fair…

Q: On December 31, 2017, Alexander Company had $1,200,000 of short-term debt in the form of notes…

A: Liability: Liability is an agreement made by a company to pay a certain amount for the goods or…

Q: ICOT Industries issued 15 million of its $1 par common shares for $440 million on April 11. Legal,…

A: The answer is as fallows

Q: Elmer's Incorporated has the following stock outstanding on Dec. 31, 2013: Ordinary Shares, P100…

A: The company can issue shares by 3 ways. 1. Sale of Stock for Cash 2. Sale of Stock on Account 3.…

Q: Tulip Corporation uses the cost method to account for treasury stock transactions on December 31.…

A: Journal entry is a record of financial transaction in the books of accounts prepared using the three…

Q: The following data were presented for WENG company on Jan. 1, 2018: Ordinary share, par value 20,…

A: The treasury stock includes the own shares of the company that are purchased from the shareholders…

Q: The following data were presented for WENG company on Jan. 1, 2018: Ordinary share, par value 20,…

A: The treasury stock includes the shares that are repurchased by the company.  The treasury stock…

Q: On December 31, 2015, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares…

A:

Q: CFAS Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2022, the…

A: Under the cost method, the purchase of treasury stock is recorded by debiting treasury stock account…

Q: Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump…

A: Stocks are issued at fair value. But, they should record as “par value for share capital” and…

Q: How much is the total Share Capital in the following * On January 1, 2011, AM PNGET Co. received…

A: Total share capital is the price of subscribed share capital which has been received.

Q: Blue Ltd. reported $4,886,625 of net income for the fiscal year ended December 31, 2021. The company…

A: Earnings per share is a metric used to measure the return earned by the shareholders for each share…

Q: The YZA Corporation has 100,000 ordinary shares authorized, par value P10. As of the end of…

A: The question is based on the concept of Financial Accounting. Earning per share is calculated by…

Q: On February 22, Stewart Corporation acquired 7,200 shares of the 200,000 outstanding shares of…

A: Costing method highlights Under the Costing method cost of the investment in securities is recorded…

Q: nary shares with a par value of P10 per share. During the current year, the entity had the following…

A: Solution: Share premium is the amount which is in excess of par value of ordinary shares. It also…

Q: The following is a list of selected account balances taken from the December 31, 2021, general…

A: The sum of assets left in a business after all obligations have been paid is known as stockholders'…

Q: Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the…

A: Retained earnings is part of net profit of the year that is retained by the organization for future…

Q: Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the…

A: Retained earnings refer to the accumulated portion of the profits of business that is not…

Q: On January 3, Melrose Corporation purchased 1,800 shares of the company's $1 par value common stock…

A: Value of treasury stock purchaes = 1800 * $11 = $19,800 Cash amount received from sale of 1450…

Q: On December 1, DOS Corporation issued 1,000 shares of its ₱10 par ordinary share capital and 2,000…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: On July 1, TruData Company issues 11,400 shares of its common stock with a $5 par value and a $40…

A: Goodwill is the amount paid for acquisition which is over and above fair market value of assets…

Q: On May 27, Hydro Clothing Inc. reacquired 75,000 shares of its common stock at $8 per share. On…

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Prepare the journal entries using Memorandum Entry method Compute for the following balance: Share…

A: Memorandum journal entry is a type of message which is entered in the general journal. This entry…

Q: During its first year of operations, Victory, Inc. entered into the following transactions relating…

A: Total fair value of Ordinary shares issued = No. of shares  x Fair value per share = 35000*100 =…

Q: Glen Tay Inc. had issued 24,000 shares of its no-par common shares on April 1, 2017 for property…

A: Journal entry is a process of recording business transactions into books of accounts initially. This…

Q: Current Assets $ 270,000 Investments $ 312,000 Share Capital - Ordinary (par Value $10) $ 300,000…

A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…

Q: total legal capital

A: Legal capital means the par value or stated value portion of the share capital.

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.