1. How are Roku’s financial statements impacted by its initial public offering (IPO)?
Original blog posting (November 21, 2017)

2. Photo source: Roku.com

3. Roku Inc.
Roku’s initial public offering (IPO) was on September 28, 2017
Issued 15,900,000 shares; $ per share
Net cash proceeds $219,420,000
Par value per share $0.0001

4. Roku Inc.
The journal entry for the stock issuance would be: Debit Cash (15,900,000 × $13.80) 219,420,000 Credit Common Stock (15,900,000 × $0.0001) 1,590 Credit Additional Paid-in Capital (difference) 219,418,410 Memo: To issue common stock

5. Question 1
What is the impact on Roku’s balance sheet from its IPO?

6. Question 2
Does this IPO have any direct impact on Roku’s net income?

7. Question 3
On what section of Roku’s statement of cash flows will the cash proceeds from the IPO appear? Will it be an increase or decrease in that section?

8. Question Recap
What is the impact on Roku’s balance sheet from its IPO?
Does this IPO have any direct impact on Roku’s net income?
On what section of Roku’s statement of cash flows will the cash proceeds from the IPO appear? Will it be an increase or decrease in that section?

9. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Dr. Wendy Tietz at