ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11.

Question:

ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11. Legal, promotional, and accounting services necessary to effect the sale cost $2 million.

Required:
1. Prepare the journal entry to record the issuance of the shares.
2. Explain how recording the share issue costs differs from the way debt issue costs are recorded.