Major Sports plans to raise $5,150,000 in an initial public offering of its common stock. The...

Transcribed Image Text:

Major Sports plans to raise $5,150,000 in an initial public offering of its common stock. The company is considering three options: a. Issue 103,000 shares of $1 par value common stock for $50 per share. b. Issue 515,000 shares of $1 par value common stock for $10 per share. c. Issue 1,030,000 shares of $1 par value common stock for $5 per share. Required: Determine the financial statement effects for each option. Complete this question by entering your answers in the tabs below. Option a Option b Option c Issue 103,000 shares of $1 par value common stock for $50 per share. Note: Amounts to be deducted should be indicated with a minus sign. If there are no effects for a particular transaction/event, select "There are no financial statement effects" in the first account field. Assets Liabilities Balance Sheet Contributed Capital Income Statement Revenues Expenses Net Income Stockholders' Equity Retained Earnings < Option a Option b > Treasury Stock Major Sports plans to raise $5,150,000 in an initial public offering of its common stock. The company is considering three options: a. Issue 103,000 shares of $1 par value common stock for $50 per share. b. Issue 515,000 shares of $1 par value common stock for $10 per share. c. Issue 1,030,000 shares of $1 par value common stock for $5 per share. Required: Determine the financial statement effects for each option. Complete this question by entering your answers in the tabs below. Option a Option b Option c Issue 103,000 shares of $1 par value common stock for $50 per share. Note: Amounts to be deducted should be indicated with a minus sign. If there are no effects for a particular transaction/event, select "There are no financial statement effects" in the first account field. Assets Liabilities Balance Sheet Contributed Capital Income Statement Revenues Expenses Net Income Stockholders' Equity Retained Earnings < Option a Option b > Treasury Stock