Question

Prepare the issuer's journal entry for each of the following separate transactions. a. On March 1, Atlantic Co. issues 51,000 shares of $3 par value common stock for $323,000 cash. b. On April 1, OP Co. issues no-par value common stock for $87,000 cash. c. On April 6, MPG issues 3,700 shares of $15 par value common stock for $56,000 of inventory, $170,000 of machinery, and acceptance of a $92,000 note payable. View transaction list Journal entry worksheet Record the issuance of 51,000 shares of $3 par value common stock for $323,000 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Answers

• All working forms part of the answer

Transaction	Accounts title	Debit	Credit
a.
Mar-01	Cash	$          323,000.00
	Common Stock [ 51000 shares x $3 par]		$      153,000.00
	Additional Paid in Capital in excess of Par- Common Stock		$      170,000.00
	(Common stock issued for cash)
b.
Apr-01	Cash	$            87,000.00
	Common Stock		$        87,000.00
	(Common stock issued for cash)
c.
Apr-06	Inventory	$            56,000.00
	Machinery	$          170,000.00
	Notes Payable		$        92,000.00
	Common Stock [3700 shares x $ 15 par]		$        55,500.00
	Additional Paid in Capital in excess of Par- Common Stock		$        78,500.00
	(Common Stock issued for consideration other than cash)