Kawasaki Heavy Industries is a large Japanese company that makes ships, aircraft engines, and many other products in addition to motorcycles. Its 2011 sales of ¥1,226,949 million were equivalent to $15,843 million. Kawasaki’s financial statements indicate (yen in millions):
Common stock, 1,670,646,460 shares issued in 2011
Total paid-in capital from the 2011 issue of stock......¥158,591
1. Assume all 1,670,646,460 shares had been issued at the same time at a ¥62 par value per share. Prepare the journal entry.
2. Is the relationship between the allocation of the total selling price between the Common Stock account and the Additional Paid-in Capital or Capital Surplus account different from what one might expect to find for a U.S. company? Explain.

  • CreatedFebruary 20, 2015
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