Question

Prepare the issuer's jounal 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 2000 shares of $25 par value common stock for $45.000 of inventory. $145.000 of machinery acceptance of a $94,000 note payable. View transaction list Journal entry worksheet 2 Record the issuance of 42,500 shares of $4 par value common stock for $297,500 cash. Note: Enter debits before credits. a. View general journal Clear entry Record entry

Answer 1

Required journal entries are as prepared below:

	Date	Particulars	L.F	Debit	Credit
a.	Mar-01	Cash		297,500
		Common Stock (42,500*4)			170,000
		Additional paid in capital-common stock			127,500
		(For 42,500 shares issued)
b.	Apr-01	Cash		70,000
		Common Stock			70,000
		(For shares issued)
c.	Apr-06	Inventory		45,000
		Machinery		145,000
		Note Payable			94,000
		Common Stock (2,000*25)			50,000
		Additional paid in capital-common stock			46,000
		(For shares issued)