When companies offer new equity security issues, they publicize the offerings in

Question

When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume t following were among the equity offerings reported in December 2018: Securities Issues Equity American Naterials Transfer Corporation (ANTC)-6.5 million common shares, $0.001 par, priced at $13.520 each through underwriters led by Second Tennessee Bank N.A, and Morgan, Dunavant s Co., according to a syndicate official Proactive Solutions Ine. (PST)-offering of 9 nillion conmon shares, 50.01 par, vaa priced at s14.00 a share via lead manager Stanley Brothers, Inc., according to a syndicate official. Required: Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs. (if no entry is calculations Enter your answers in whole dollars.) d for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate View transaction list Journal entry worksheet 12 Record the issuance of the AMTC stock

Explanation / Answer

American Materials Transfer Corporation (AMTC) Date Particulars Debit Credit Cash a/c………dr 87886500        To Common Stock a/c 6500 ($0.001 * 6.5 million)       To paid-in Capital (in excess of par) 87880000 ($13.52 * 6.5 million) (to record issue of 6.5 million shares $0.001 per share, at 13.520) Proactive Solutions Inc Date Particulars Debit Credit Cash a/c………dr 127890000        To Common Stock a/c 90000 ($0.01 * 9000000)       To paid-in Capital (in excess of par) 127800000 ($14.20 * 9000000) (to record issue of 9 million shares $0.01 per share, at $14 per share)

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