Question

unus paid each year to each of the two classes of stockholders lidt the preferred stock is cumulative. Problem 5 (10 points) Prepare the issuer's journal entry for each separate transaction a. Un March 1, Atlantic 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 machinery and acceptance of an $94,000 note payable.

Answer 1

No.	Accounts	Debit	Credit
a.	Cash	$297,500
	Common stock (42500*4)		$170,000
	Additional paid in capital - common stock		$127,500
b.	Cash	$70,000
	Common stock		$70,000
c.	Inventory	$45,000
	Machinery	$145,000
	Notes payable		$94,000
	Common stock (2000*25)		$50,000
	Additional paid in capital		$46,000