(Solved): Ray Dolby started Dolby Laboratories and since then has been a leader in the entertainment industry ...

Ray Dolby started Dolby Laboratories and since then has been a leader in the entertainment industry and consumer electronics. Closely held since its founding in 1965, Dolby decided to go public. Here's an AP news report: DOLBY'S IPO EXPECTED TO PLAY SWEET MUSIC-The initial public offering market is hoping for a big bang this week from Dolby Laboratories Inc. The San Francisco company, whose sound systems and double-D logo are ubiquitous in the movie industry as well as in consumer electronics, plans to sell \( 27.5 \) million shares for \( \$ 13.50 \) to \( \$ 15.50 \) each. Founded by Cambridge-trained scientist Ray Dolby 39 years ago, the company started out manufacturing noise-reduction equipment for the music industry that elliminated the background "hiss" on recordings, and has since expanded to encompass everything from digital audio systems to Dolby Surround sound. The company's IPO, which is lead-managed by underwiters Morgan Stanley and Goldman Sachs Group Inc., is expected to do well not only because of its brand recognition, but also because of its strong financials. (AP) Required: 1. Assuming the shares are issued at the midpoint of the price range indicated, how much capital did the IPO raise for Dolby Laboratories before any underwriting discount and offering expenses? 2. If the par amount is \( \$ 0.01 \) per share, what journal entry did Dolby use to record the sale? Complete this question by entering your answers in the tabs below. Assuming the shares are issued at the midpoint of the price range indicated, how much capital did the IPO raise for Dolby Laboratories before any underwriting discount and offering expenses? (Enter your answer in millions rounded to 2 decimal ptaces (i.e., 5,500,000 should be entered as 5.50), ) If the par amount is \( \$ 0.01 \) per share, what journal entry did Dolby use to record the sale? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 3 decimal places (1.e., 5,500,000 should be entered as \( 5.500) \). Journal entry worksheet If the par amount is \( \$ 0.01 \) per share, record the sale of the shares. Notel Enter debits before creaits.