Ray Dolby started Dolby Laboratories and since then has been a leader in the entertainment industry and consumer electronics. Closely held since its founding in 1965, Dolby decided to go public. Here's an AP news report DOLBY'S IPO EXPECTED TO PLAY SWEET MUSIC-The initial public offering market is hoping for a big bang this week from Dolby Laboratories Incorporated. The San Francisco company, whose sound systems and double-D logo are ubiquitous in the movie industry as well as in consumer electronics, plans to sell 27.5 million shares for $13.50 to $15.50 each. Founded by Cambridge-trained scientist Ray Dolby 39 years ago, the company started out manufacturing noise-reduction equipment for the music industry that eliminated the background "Y d "hiss" on recordings, and has since expanded to encompass everything from digital audio systems to Dolby Surround sound. The company's IPO, which is lead-managed by underwriters Morgan Stanley and Goldman Sachs Group Incorporated, is expected to do well not only because of its brand recognition, but also because of its strong financials. (AP) Required: 1. Assuming the shares are issued at the midpoint of the price range indicated, how much capital did the IPO raise for Dolby Laboratories before any underwriting discount and offering expenses? 2. If the paramount is $0.01 per share, what journal entry did Dolby use to record the sale? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the par amount is $0.01 per share, what journal entry did Dolby use to record the sale? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 3 decimal places (ie., 5,500,000 should be entered as 5.500). View transaction list Journal entry worksheet If the par amount is $0.01 per share, record the sale of the shares. Note: Enter debits before credits Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal

Ray Dolby started Dolby Laboratories and since then has been a leader in the entertainment industry and consumer electronics. Closely held since its founding in 1965, Dolby decided to go public. Here's an AP news report DOLBY'S IPO EXPECTED TO PLAY SWEET MUSIC-The initial public offering market is hoping for a big bang this week from Dolby Laboratories Incorporated. The San Francisco company, whose sound systems and double-D logo are ubiquitous in the movie industry as well as in consumer electronics, plans to sell 27.5 million shares for $13.50 to $15.50 each. Founded by Cambridge-trained scientist Ray Dolby 39 years ago, the company started out manufacturing noise-reduction equipment for the music industry that eliminated the background "Y d "hiss" on recordings, and has since expanded to encompass everything from digital audio systems to Dolby Surround sound. The company's IPO, which is lead-managed by underwriters Morgan Stanley and Goldman Sachs Group Incorporated, is expected to do well not only because of its brand recognition, but also because of its strong financials. (AP) Required: 1. Assuming the shares are issued at the midpoint of the price range indicated, how much capital did the IPO raise for Dolby Laboratories before any underwriting discount and offering expenses? 2. If the paramount is $0.01 per share, what journal entry did Dolby use to record the sale? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the par amount is $0.01 per share, what journal entry did Dolby use to record the sale? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 3 decimal places (ie., 5,500,000 should be entered as 5.500). View transaction list Journal entry worksheet If the par amount is $0.01 per share, record the sale of the shares. Note: Enter debits before credits Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2TP: Roald is the sales manager for a small regional manufacturing firm you own. You have asked him to...

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Transcribed Image Text:Ray Dolby started Dolby Laboratories and since then has been a leader in the entertainment industry and consumer electronics. Closely held since its founding in 1965, Dolby decided to go public. Here's an AP news report DOLBY'S IPO EXPECTED TO PLAY SWEET MUSIC-The initial public offering market is hoping for a big bang this week from Dolby Laboratories Incorporated. The San Francisco company, whose sound systems and double-D logo are ubiquitous in the movie industry as well as in consumer electronics, plans to sell 27.5 million shares for $13.50 to $15.50 each. Founded by Cambridge-trained scientist Ray Dolby 39 years ago, the company started out manufacturing noise-reduction equipment for the music industry that eliminated the background "hiss" on recordings, and has since expanded to encompass everything from digital audio systems to Dolby Surround sound. The company's IPO, which is lead-managed by underwriters Morgan Stanley and Goldman Sachs Group Incorporated, is expected to do well not only because of its brand recognition, but also because of its strong financials. (AP) Required: 1. Assuming the shares are issued at the midpoint of the price range indicated, how much capital did the IPO raise for Dolby Laboratories before any underwriting discount and offering expenses? 2. If the par amount is $0.01 per share, what journal entry did Dolby use to record the sale? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the par amount is $0.01 per share, what journal entry did Dolby use to record the sale? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 3 decimal places (ie., 5,500,000 should be entered as 5.500). View transaction list Journal entry worksheet If the par amount is $0.01 per share, record the sale of the shares. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal >

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