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.

Answer 1

The issuer's journal entries for each of the given transactions are as follows:

- On March 1, Atlantic Co. issued 51,000 shares of $3 par value common stock for $323,000 cash.
- On April 1, OP Co. issued no-par value common stock for $87,000 cash.
- On April 6, MPG issued 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.

Step-by-step explanation:

For each of the given transactions:

1. On March 1, Atlantic Co. issued 51,000 shares of $3 par value common stock for $323,000 cash.

• Issuer's journal entry:

Dr. Cash $323,000

Cr. Common Stock $153,000

Cr. Additional Paid-in Capital $170,000

On April 1, OP Co. issued no-par value common stock for $87,000 cash.

• Issuer's journal entry:

Dr. Cash $87,000

Cr. Common Stock $87,000

On April 6, MPG issued 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.

• Issuer's journal entry:

Dr. Inventory $56,000

Dr. Machinery $170,000

Dr. Note Payable $92,000

Cr. Common Stock $55,500

Cr. Paid-in Capital in Excess of Par Value $262,500

Answer 2

March 1

Account Debit Credit

Cash $323,000

Common Stock $153,000

Paid-In Capital in Excess

of Par Value $170,000

April 1

Account Debit Credit

Cash $87,000

Common Stock-no par value $87,000

April 6

Account Debit Credit

Inventory $56,000

Common Stock $56,000

Machinery $170,000

Paid-In Capital in Excess of

Common Stock $170,000

Note Payable $92,000

Cash $92,000