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 48,500 shares of $3 par value common stock for $315,500 cash. b. On April 1, OP Co. issues no-par value common stock for $82,000 cash. c. On April 6, MPG issues 3,200 shares of $25 par value common stock for $51,000 of inventory, $160,000 of machinery, and acceptance of a $101,000 note payable.

Answer 1

	General Journal	Debit	Credit
A.March 1	Cash	315500
	common stock $3 par value		145500
	Paid in capital in excess of Par value-common stock		170000
	(To record proceeds from common stock)
B.April 1	Cash	82000
	common stock no par value		82000
	(To record proceeds from common stock no par value)
C..April 6	Inventory	51000
	Machinery	160000
	Notes payable		101000
	common stock $25 par value		80000
	Paid in capital in excess of Par value-common stock		30000
	(To record proceeds from common stock)