Answer:
Date Account Title Debit Credit
January 29 Cash $51,450,000
Common stock $30,000
Additional Paid-In capital $51,420,000
Explanation:
Company wants to sell 3 million shares at $17.15.
The cash they will make from this is:
= 3,000,000 * 17.15
= $51,450,000
The par value of this common stock sale is:
= number of shares * par value
= 3,000,000 * 0.01
= $30,000
Additional paid-in capital will be:
= Cash - Common stock par value
= 51,450,000 - 30,000
= $51,420,000
