Prepare the issuer’s journal entry for each of the following separate transactio
ID: 2469181 • Letter: P
Question
Prepare the issuer’s journal entry for each of the following separate transactions.
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.Explanation / Answer
Date Particulars Debit Credit a. March 1 Dr. Cash A/c $323,000 Cr. Common Stock $3 Par value (51,000*$3) $153,000 Cr. Paid in capital in excess of par value $170,000 b. April 1 Dr. Cash a/c $87,000 Cr. Common Stock, no par value $87,000 c. April 6 Dr. Inventory a/c $56,000 Dr. Machinery a/c $170,000 Cr. Common Stock $15 par value $55,000 Cr. Notes payable $92,000 Cr. Paid in capital in excess of par value $79,000