CHAPTER 18

1. Penne Pharmaceuticals sold 20 million shares of its $1 par common stock to provide funds for research and development. If the issue price is $10 per share, what is the journal entry to record the sale of the shares?

2, Agee Storage issued 44 million shares of its $1 par common stock at $20 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $18 per share. Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agees total paid-in capital decline if it now reacquires 1 million shares at $23 per share?