In February and March, the Company sold shares of Common Stock at $ per share in a public offering. Net proceeds to the Company were approximately $ million after the underwriting discount and offering expenses.

Required:

Write a formal memo to your supervisor. Briefly explain how to share issue costs are accounted for and how that accounting differs from that of debt issue costs. To make sure your explanation is understood in the context of the footnote, include in your memo the following:

At what total amount did the shares sell to the public? How is the difference between this amount and the $ million net proceeds accounted for?

The appropriate journal entry to record the sale of the shares.

Please provide calculations for all work in the memo letter