Liu Industries issued 15 million of its $1 par common shares for $424 million on April 11.
Question:
Liu 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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (5 reviews)
1 The journal entry is as follows i Record issuance ...View the full answer
Answered By
Brian Otieno
I'm Brian , an experienced professional freelancer with countless hours of success in freelancing many subjects in different disciplines. Specifically, I have handled many subjects and excelled in many disciplines. I have worked on many Computer Science projects and have been able to achieve a lot in that field. Additionally, I have handled other disciplines like History, Humanities, Social Sciences, Political science, Health care and life science, and Religion / Theology. My experience generally in these subjects has made me able to deliver high-quality projects in a very timely fashion. I am very reliable at my job and will get the work done in time, no matter what. In Addition, I have managed to ensure that the work meets my client's expectations and does not cause an error. I am a hard-working and diligent person who is highly responsible for everything I do. Generally, Freelancing has made me more accountable for doing my job. Additionally, I have had a passion for writing for the last seven years in this field.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
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....
-
ICOT Industries issued 27 million of its $1 par common shares for $488 million on April 11. Legal, promotional, and accounting services necessary to effect the sale cost $2 million. Required: 1....
-
The costs of legal, promotional, and accounting services necessary to effect the sale of shares are referred to as share issue costs. How are these costs recorded? Compare this approach to the way...
-
Nanette works for Piroz and is paid a basic wage of $1,000 a week. Piroz operates the following bonus scheme: (1) Each employee gets a bonus of $4 for every unit they produce in excess of 2,000 units...
-
List all active students in June by name. (Make up names and other data if you are actually building a prototype database.) Include the number of hours students received tutoring and how many lessons...
-
Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 7%...
-
How do mentoring and diversity training support a companys diversity, equity, and inclusion efforts?
-
Two light sources can be adjusted to emit monochromatic light of any visible wavelength. The two sources are coherent, 2.04m apart, and in line with an observer, so that one source is 2.04m farther...
-
Would it be valuable for MMM to increase their pay-out ratio or decrease it to reinvest more in the company? Why does only one model respond to the 5-year growth rate?
-
Analyze the effects of an autonomous fall in the demand for a country's exports under fixed and flexible exchange rate systems. In each case, indicate the effects on the country's balance of payments...
-
The following is a portion of the Statement of Shareholders Equity from Cisco Systems July 25, 2020 annual report. Required: 1. How does Cisco account for its share buybacks? Treasury stock or...
-
The Basu Group reacquired 2 million of its shares at $70 per share as treasury stock. Last year, for the first time, Basu sold 1 million treasury shares at $71 per share. If Basu now sells the...
-
If the function f (t) is a solution of the initial-value problem y = 2y - 3, y(0) = 4, find f (0) and f(0).
-
Outline some of the reasons that strategic plans and strategic planning processes success. What steps can organizational leaders, including Project Managers, take to ensure the success of...
-
(a) Uly paper clip dispensers are produced with a fixed cost of $10,000 and a constant marginal cost of $6. If the demand for these dispensers has a price elasticity of -1.5, what is the...
-
Explain fully the concept of Twin Deficits and use this concept to explain why the cause of the US trade deficit with China is largely due to American wars across the globe.
-
what are the sources of unemployment and effectiveness of employment policies in italy. What are the employment policies that has been implemented since 2009 (monetary/ fiscal policies; structural...
-
Suppose that you take $350 in currency out of your pocket and deposit it in your checking account. If the required reserve ratio is 12%, what is the largest amount (in dollars) by which the money...
-
The following data represent the planned rated capacities in megawatts (millions of watts) for the world's 20 largest hydroelectric plants. a. Construct a stem and leaf display for the data. b. How...
-
Troy is a qualified radiologist who operates a successful radiology practice from purpose- built rooms attached to his house. Troy works in the practice three days a week, and the other two days he...
-
Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land,...
-
Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land,...
-
Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land,...
-
Which is the correct answer? What advantage do sole proprietorships have over corporations? Question 14 options: Owners of sole proprietorships cannot be held responsible for their company's debts....
-
When making predictions about cash flows relevant to investment decisions, managerial accountants rely on Blank______. Multiple select question. knowledge of market conditions historical accounting...
-
Problem B: Using the information in the table provided: (1) complete the inventory record as it would appear at the beginning of week 1; and (2) complete the inventory record as it would appear at...
Study smarter with the SolutionInn App