(Answered) Icot industries issued 15 million of its 1 par common

Accounting

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.

2. Explain how recording the share issue costs differs from the way debt issue costs are recorded.

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Accounting Basics, Accounting

Category:- Accounting Basics
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