Exercise 18-4 Stock issued for cash; Knowlton Medical Group [LO18-4] The following is a news item reported by Reuters: WASHINGTON, Jan 29 (Reuters)-Knowiton 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 and 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 37.5 million shares outstanding in the Arlington, Tennessee-based company, according to the SEC filing. Knowlton shares closed at $1775 on Nasdaq. The common stock of Knowlton Medical Group has a par of $0.05 per share. Required Prepare the journal entry to record the sale of the shares assuming the price existing when the announcement was made and ignoring share issue costs. (If no entry is required for a transaction/event, select No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list View transaction list Journal entry worksheet Record the issuance of the new stock. Note: Enter debits before credits. Event General Journal Debit Credit View general journal Record entry Clear entry