Question

Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 47,000 shares of $3 par value common stock for $311,000 cash. On April 1, OP Co. issues no-par value common stock for $79,000 cash. On April 6, MPG issues 2,900 shares of $20 par value common stock for $48,000 of inventory, $180,000 of machinery, and acceptance of a $98,000 note payable.

Answer 1

A. March 1

Dr Cash $ $311,000

Cr Common Stock

$ 141000

Cr To Paid in Capital in Excess of Par $ 170,000

B.April , 01

Dr Cash $79,000

Cr Common Stock $79,000

C. April, 06

Dr Inventory $48,000

Dr Machienary $180,000

Cr To Note Payable $98,000

Cr Common Stock $58,000

Cr Paid in Capital in excess of par (Balancing Figure) $72,000

Explanation:

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

A. March 1

Dr Cash $ $311,000

Cr Common Stock

(47,000 Shares " $ 3) $ 141000

Cr To Paid in Capital in Excess of Par $ 170,000

(311,000-141,000)

B.April , 01

Dr Cash $79,000

Cr Common Stock $79,000

C. April, 06

Dr Inventory $48,000

Dr Machienary $180,000

Cr To Note Payable $98,000

Cr Common Stock $58,000

(2,900 Shares * $ 20)

Cr Paid in Capital in excess of par (Balancing Figure) $72,000

($48,000+$180,000-$98,000-$58,000)