Homework SourseICOT Industries issued 15 million of its 1 par common shares
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. 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). Do not round your intermediate calculations.)
Solution
Journal entry :
| Date | accounts & explanation | debit | credit |
| Cash a/c | 424 | ||
| Common stock a/c | 15 | ||
| Paid in capital in excess of par value | 409 | ||
| (To record issue of common stock) | |||
| Paid in capital in excess of par value | 2 | ||
| Cash a/c | 2 | ||
| (To record cost of stock issuance) | |||
