Major Sports plans to raise $5,000,000 in an initial public offering of its common stock. The company
Question:
Major Sports plans to raise $5,000,000 in an initial public offering of its common stock. The company is considering three options:
a. Issue 100,000 shares of $1 par value common stock for $50 per share.
b. Issue 500,000 shares of $1 par value common stock for $10 per share.
c. Issue 1,000,000 shares of $1 par value common stock for $5 per share.
Required:
Record the issuance of common stock for each option.
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a 100 000 shares of 1 par value common stock issued for 50 per share Deb it Cash for 5 000 000 Credit Common Stock for 1 000 000 Credit Additional Paid in Capital for 4 000 000 b 500 000 shares of 1 par value common stock issued for 10 per share Deb it Cash for 5 000 000 Credit Common Stock for 500 000 Credit Additional Paid in Capital for 4 500 000 c 1 000 000 shares of 1 par value common stock issued for 5 ...View the full answer
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