Prepare the issuer’s journal entry for each of the following separate transactio
ID: 2571510 • Letter: P
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 $4 par value common stock for $357,000 cash.
B. On April 1, Antigo Company isshes no-par value common stock for $75,000 cash.
C. On April 6, MPG issues 4,200 shares of $18 par value common stock for $42,000 of inventory, $160,000 of machinery, and acceptance of a $113,000 note payable. Prepare the issuer’s journal entry for each of the following separate transactions.
A. On March 1, Atlantic Co. issues 51,000 shares of $4 par value common stock for $357,000 cash.
B. On April 1, Antigo Company isshes no-par value common stock for $75,000 cash.
C. On April 6, MPG issues 4,200 shares of $18 par value common stock for $42,000 of inventory, $160,000 of machinery, and acceptance of a $113,000 note payable.
A. On March 1, Atlantic Co. issues 51,000 shares of $4 par value common stock for $357,000 cash.
B. On April 1, Antigo Company isshes no-par value common stock for $75,000 cash.
C. On April 6, MPG issues 4,200 shares of $18 par value common stock for $42,000 of inventory, $160,000 of machinery, and acceptance of a $113,000 note payable.
Explanation / Answer
Journal Entries
Date Description Debit ($) Credit ($) March 1 Cash 357,000 Common Stock $4 par value (51,000 shares * $4) 204,000 Paid in excess of par value , common stock 153,000 (To record issue of 51,000 shares of common stock in cash ) April 1 Cash 75,000 Common stock , no par value 75,000 (To record issue of no- par value common stock) April 6 Inventory 42,000 Machinary 160,000 Note Payable 113,000 Common Stock , $18 par value (4,200 * $18) 75,600 Paid in excess of par value , common stock 13,400 (To record Issue of 4,200 shares of common stock in exchage of inventory & machinary along with the acceptance of note payable )