Question

QS 11-5 Issuance of common stock LO P1 Prepare the issuer's journal entry for each of the following separate transactions. a. On March 1, Atlantic Co. issues 42,500 shares of $4 par value common stock for $297,500 cash. b. On April 1, OP Co. issues no-par value common stock for $70,000 cash. c. On April 6, MPG issues 2,000 shares of $25 par value common stock for $45,000 of inventory, $145,000 of machiner acceptance of a $94,000 note payable. View transaction list Journal entry worksheet 1 2 Record the issuance of 42,500 shares of $4 par value common stock for $297,500 cash.

Answer 1

Journal entry

No	Account and explanation	Debit	Credit
Mar 1	Cash	297500
	Common Stock (42500*4)		170000
	Paid in capital in excess of par value-Common Stock		127500
Apr 1	Cash	70000
	Common Stock		70000
Apr 6	Inventory	45000
	Machinery	145000
	Notes payable		94000
	Common Stock (2000*25)		50000
	Paid in capital in excess of par value-Common Stock		46000