IPO - how does balance sheet change?

[PistolPt]

Will not be relevant for exam but I was wondering - in an IPO, where does the cash from the public sale go on the balance sheet? To Assets? In that case, what increases in Liabilities or Equity to compensate for this?
I feel like this was a Level I or Level II question and I suddenly can’t answer it.

 

[janakisri]

any IPO’s or secondary offerings raise equity . It will be shown as shareholders equity. only debts will be shown as liability. assets = equity+liability.
These are simplifications , there are shades of grey in each class .

 

[Diskopotato]

Debit Cash, Credit Paid in Capital

 

[Allstatsandy]

Debit: Cash (i.e. increase asset)
Credit: Paid in Capital (i.e. increase equity)
Nb: No affect on liabilities
This is regardless of the IPO. If there is an new equity offering, this is the transation in the trial balance.

 

[Allstatsandy]

Debit: Cash (i.e. increase asset)
Credit: Paid in Capital (i.e. increase equity)
Nb: No affect on liabilities
Regardless of the type of equity offering (e.g. IPO), this is the entry in the trial balance.

 

[Allstatsandy]

Debit: Cash (i.e. increase asset)
Credit: Paid in Capital (i.e. increase equity)
Nb: No affect on liabilities
Regardless of the type of equity offering (e.g. IPO), this is the entry in the trial balance.