Answer:
2,557,065 shares
Explanation:
Offer price = $30 per share
Underwriters Charge : 8%
If the company's underwriters sells new shares at the $30 per share issue price, Whistling straits corporation will receive:
offer price x (1 - underwriters charge)
= $30 × (1 - 0.08) = $27.60
The number of shares that needs to be sold will be:
= 2,557,065.217
≈ 2,557,065
Therefore number of shares to be issued will be = 2557065 shares
Answer:
The answer is well illustrated as below
Explanation:
Remember: Five factors affects the Pension Liability and Plan assets.
1 & 2. Expenses which includes service cost and interest cost
The increase in expense always increases the pension liability so the entry would be:
Dr Service cost $27,100
Dr Interest Cost $30,300 ...... $303,000 Opening Pension Liability * 10%
Cr Pension Liability $57,400
3. Actual return increases the Plan Asset
The Actual return on investment received would increase the Assets worth, which means the journal entry must be passed which would increase the Investment Value (Plan Asset). So the entry would be:
Dr Plan Asset $25,700
Cr Actual return $25,700
4. Contributions made increases the Plan Asset because it is an increase in the investment.
So the journal entry would be:
Dr Plan Asset $20,000
Cr Cash Asset $20,000
5. The benefits paid to employees are decrease in both pension asset and the pension liability. (We had actually borrowed money from the employees and had invested that money so paying off the benefits actually decreases the pension liability and assets).
So the double entry would be:
Dr Pension Liability $17,700
Cr Pension Assets $17,700
Kindly input the above values in the following worksheet:
