The following is a news item reported by reuters: washington, jan 29 (reuters)—wright 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 31.5 million shares outstanding in the arlington, tennessee-based company, according to the sec filing. wright shares closed at $17.15 on nasdaq. the common stock of wright medical group has a par of $0.01 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.

Lipman auto parts, a family-owned auto parts store, began january with $10,300.00 in cash. management forecasts that collections from credit customers will be $11,400.00 in january and $14,800.00 in february. the store is scheduled to receive $5,000.00 in cash on a business note receivable in january. projected cash payments include inventory purchases ($13,000.00 in january and $13,600.00 in february) and operating expenses ($2,700.00 each month). lipman auto parts' bank requires a $10,000.00 minimum balance in the store's checking account. at the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. lipman auto parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. the first payment occurs three months after the loan.