Answer:
$16,000,000
Explanation:
This question requires us to give the amount arising in cash assets after this transaction.
We simply have to focus on the price offered for the share on the date of sale which is $16.00. Thus, cash proceeds (debited) will be :
Cash Proceeds = Share Price × Number of Shares issued
= $16.00 × 1,000,000 shares
= $16,000,000
<u>The rest of the Journal entry for this transaction will be :</u>
Debit : Cash ($16.00 × 1,000,000) $16,000,000
Credit : Common Stock ($0.12 × 1,000,000 shares) $120,000
Credit : Paid In Excess of Par ($15,88 × × 1,000,000 shares) $15,880,000
