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What is the impact of the Candy Crush Saga maker’s IPO on its balance sheet?

What is the impact of the Candy Crush Saga maker’s IPO on its balance sheet?. Original blog posting (April 2, 2014). King Digital Entertainment had IPO. Began the week of March 24, 2014 Priced at $22.50 per share P ar value is $0.000197 per share Raised about $500 million

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What is the impact of the Candy Crush Saga maker’s IPO on its balance sheet?

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  1. What is the impact of the Candy Crush Saga maker’s IPO on its balance sheet? Original blog posting (April 2, 2014)

  2. King Digital Entertainment had IPO • Began the week of March 24, 2014 • Priced at $22.50 per share • Par value is $0.000197 per share • Raised about $500 million • Approximately 2,300,000 shares were issued

  3. Question 1 Assume the IPO took place on March 26, 2014.  What journal entry would King make on this day to reflect the stock issuance?

  4. Question 2 What is the impact on assets of this IPO?  On liabilities?  On stockholders’ equity?

  5. Question Recap • Assume the IPO took place on March 26, 2014.  What journal entry would King make on this day to reflect the stock issuance? • What is the impact on assets of this IPO?  On liabilities?  On stockholders’ equity?

  6. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/Related video resources can be found at http://www.youtube.com/user/accountingheadlinesQuestions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu

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