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The following is a news item reported by Reuters: WASHINGTON, Jan 29 (Reuters)-Knowlton Medical Group, a maker of reconstructive implants for knees and hips, on Tuesday filed to sell 3 million shares of common stock In a filing with the U.S. Securities dnd Exchange Commission, it said it plans to use the proceeds from the offering for general corporate purposes, working capital, research and development, and acquisitions After the sale there will be about 35 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC fling Knowiton shares closed at $17.75 on Nasdaq The common stock of Knowlton Medical Group has a par of $0.05 per share. Required: share issue costs. (If no entry is required for a transaction/event, select No journal entry req to record the sale of the shares assuming the price existing when the announcement was made and uired in the first account fleld. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the issuance of the new stock Note: Enter debits before credits Event General Journal Debit Credit
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Answer #1

Solution:

Journal entry:

Debit Credit
Cash (3 million * $17.75) 53,250,000
   Common stock (3 million * $0.05) 150,000
   Paid-in capital - excess of par 53,100,000
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