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Alisiya [41]
3 years ago
13

ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11, 2012. Legal, promotional, and accoun

ting services necessary to effect the sale cost $2 million.
Required: Show the journal entry to record the issuance. How does this treatment compare to debt issue costs we talked about in chapter 14?
Business
1 answer:
Gnoma [55]3 years ago
4 0

Answer:

Date     Account title and Explanation             Debit               Credit

Apr 11   Cash ($424 million - $2 million)     $422,000,000

                    Common stock                                                     $15,000,000

                     Paid in capital in excess of par value                $407,000,000

                      ($422,000,000 - $15,000,000)

              (To record the issue of common Stock)

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Other things are the same, if the exchange rate changes from 20 pesos per dollar to 30 pesos per dollar, then the dollar (A) appreciates and buys more Mexican goods.

<h3>What is the exchange rate?</h3>
  • An exchange rate is a rate at which one currency is exchanged for another in finance.
  • Currencies are most typically national currencies, although they can also be sub-national, as in Hong Kong, or supra-national, as in the euro.
  • The value of one country's currency in respect to another currency is also referred to as the exchange rate.
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Therefore, other things are the same, if the exchange rate changes from 20 pesos per dollar to 30 pesos per dollar, then the dollar (A) appreciates and buys more Mexican goods.

Know more about exchange rates here:

brainly.com/question/2202418

#SPJ4

The correct question is given below:

Other things are the same, if the exchange rate changes from 20 pesos per dollar to 30 pesos per dollar, then the dollar ________.

The group of answer choices

(A) appreciates and buys more Mexican goods.

(B) appreciates and buys fewer Mexican goods.

(C) depreciates and buys more Mexican goods.

(D) depreciates and buys fewer Mexican goods.

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