Question

Prepare the issuer's journal entry for each of the following separate transactions.

On March 1, Atlantic Co. issues 48,000 shares of $5 par value common stock for $314,000 cash.

On April 1, OP Co. issues no-par value common stock for $81,000 cash.

On April 6, MPG issues 3,100 shares of $20 par value common stock for $50,000 of inventory, $155,000 of machinery, and acceptance of a $100,000 note payable.

Answer 1

--Journal entries

Date	Accounts title	Debit	Credit
01-Mar	Cash	$314,000
	Common Stock [48000 shares x $ 5]		$240,000
	Paid in Capital in excess of Par Common Stock		$74,000
01-Apr	Cash	$81,000
	Common Stock		$81,000
06-Apr	Inventory	$50,000
	Machinery	$155,000
	Notes Payable		$100,000
	Common Stock [3100 shares x $ 20]		$62,000
	Paid in Capital in excess of Par Common Stock		$43,000