Reference no: EM132965097

Question - When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings reported in December, year 1: New Securities Issues Equity Texas Coal Inc. (TCI)-7.6 million common shares, $0.004 par, priced at $13.563 each through underwriters led by Second Louisiana Bank and Flemmings & Co., according to a syndicate official. Faber Solutions Inc. (FSI)-Offering of 8 million common shares, $0.02 par, was priced at $15.90 a share via lead manager Cooper Brothers, Inc., according to a syndicate official. Required: Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs.

In year 3, Florence Clothing Company entered into the treasury stock transactions described below. In year 1, Florence Clothing had issued 143 million shares of its $1.26 par common stock at $18 per share.

Required - Prepare the appropriate journal entry for each of the following transactions:

1. On January 23, year 3, Florence Clothing reacquired 13 million shares at $22 per share.

2. On September 3, year 3, Florence Clothing sold 1 million treasury shares at $23 per share.

3. On November 4, year 3, Florence Clothing sold 1 million treasury shares at $20 per share.