Chapter 18 HW 1 The Follow 24. 10.00 points The following is a news tem reported

ID: 2586990 • Letter: C

Question

Chapter 18 HW 1 The Follow 24. 10.00 points The following is a news tem reported by Reuters WASHINGTON, Jan 29 (Reuters)-Wright Medical Group, a maker of reconstructive implants for knees and hips, on Tuesday filed to sell 3 milion shares of common stock In a filing with the U.S. Securities and Exchange Commission, it said it plans to use the proceeds from the offering for general corporate purposes, working capital, research and development, and acquisitions. Ater the sale there will be about 39.0 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC filing Wright shares closed at $17.90 on Nasdaq The common stock of Wright Medical Group has a par of $0.03 per share. Required: Prepare the joumal entry to record the sale of the shares assuming the price existing when the arrouncement was made and ignoring share 'ssue costs "no entry is required for a select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list 1 Record the issuance of the new stock 20 F3

Explanation / Answer

Date

Particular

Debit

Credit

Jan 29

Cash

53700000

Common Stock

90000

Paid in capital in excess of par

53610000

(To record the sale of 3m common stock shares 0.03 par for 17.90)

Explanation:

Cash: 3000000 x 17.90 = 53700000

Computation of paid in capital in excess of par of common stock:

Number of shares sold = 3000000

Par value per share = 0.03

Total common stock at par value = 90000