The following is a news Item reported by Reuters: WASHINGTON, January 29 (Reuters)- Orville Medical Group, a maker of reconstructive Implants for knees and hips, on Tuesday filed to sell 3 million 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. After the sale there will be about 34.0 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC filing. Orville shares closed at $17.40 on Nasdaq. The common stock of Orville Medical Group has a par of $0.02 per share. Required: Prepare the Journal entry to record the sale of the shares assuming the price existing when the announcement was made and ignoring share issue costs. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Enter your answers In whole dollars and not in millions. View transaction list Journal entry worksheet < 1 Record the issuance of the new stock.

The following is a news Item reported by Reuters: WASHINGTON, January 29 (Reuters)- Orville Medical Group, a maker of reconstructive Implants for knees and hips, on Tuesday filed to sell 3 million 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. After the sale there will be about 34.0 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC filing. Orville shares closed at $17.40 on Nasdaq. The common stock of Orville Medical Group has a par of $0.02 per share. Required: Prepare the Journal entry to record the sale of the shares assuming the price existing when the announcement was made and ignoring share issue costs. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Enter your answers In whole dollars and not in millions. View transaction list Journal entry worksheet < 1 Record the issuance of the new stock.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following is a news item 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 million 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. After the sale there will be about 31.5 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC filing. Wright shares closed at $17.15 on Nasdaq. The common stock of Wright Medical Group has a par of $.01 per share. Required: Prepare the journal entry to record the sale of the shares assuming the price existing when the announcement was made and ignoring share issue costs.
The following is a news item reported by Reuters:WASHINGTON, Jan 29 (Reuters)—Crossfire Medical Group, a maker of reconstructive implants for knees and hips, on Tuesday filed to sell 3 million 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. After the sale there will be about 32.5 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC filing. Wright shares closed at $17.25 on Nasdaq. The common stock of Crossfire Medical Group has a par of $0.03 per share. Required:Prepare the journal entry to record the sale of the shares assuming the price existing when the announcement was made and ignoring share issue costs.
On April 27, 2018, DocuSign, a California company that provides technology to enable digital signatures on important documents, conducted its initial public offering (IPO) of common stock. In the primary market the company’s shares were priced at $29 per share, but after one day of trading on the Nasdaq, the share price closed at $39.73. The company sold 21.7 million shares in the offering. To what extent (in dollars and on a percentage basis) was DocuSign’s stock underpriced in its IPO? How much cash (before deducting fees to investment banks) did DocuSign raise? How much more would it have raised if the shares had not been underpriced?
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XYZ Corp. has announced that it will take four rights to buy a new share in the offering at a subscription price of $35. At the close of business, the day before the ex- rights day, the company's stock sells for $60 per share. The next morning, you notice that the stock sells for $53 per share and the rights sell for $6 each. Are the stock and/or the rights correctly priced on the ex-rights day? Describe a transaction in which you could use these prices to create an immediate profit.
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ICOT Industries issued 15 million of its $1 par common shares for $440 million on April 11. Legal, promotional, and accounting services necessary to effect the sale cost $1 million. Required: 1. Prepare the journal entry to record the issuance of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet 1 Record the issuance of the shares. Note: Enter debits before credits.
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For several years Fister Links Products has held shares of Microsoft common stock, considered by the company to be securities available-for-sale. The shares were acquired at a cost of $500,000. Their fair value last year was $610,000 and is $670,000 this year. At what amount will the investment be reported in this year’s balance sheet? What adjusting entry is required to accomplish this objective?
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