Williams Industries has outstanding $30$ million common

shares, $20$ million Class A shares, and $20$ million Class B

shares. Williams has the right but not the obligation to

repurchase the Class A shares if a change in ownership of

the voting common shares causes J$.$ P$.$ Williams, founder

and CEO, to have less than $50\%$ ownership. Williams has the

unconditional obligation to repurchase the Class B shares

upon the death of J$.$ P$.$ Williams.

Liu 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.

E $187$

Share issue

costs; issuance

$$ LO$184$

Required:

$1.$ Prepare the journal entry to record the issuance of the

shares$\mathrm{.}2.$ Explain how recording the share issue costs differs from the

way debt issue costs are recorded.