Question

prepare the issuers journal entry for each of the following separate transactions.
a. on march 1, atlantic company issues 48,500 shares of $3 par - value common stock for $315,500 cash.
b. on april 1, op company issues no - par value common stock for $82,000 cash.
c. on april 6, mpg issues 3,200 shares of $25 par value common stock for $51,000 of inventory, $160,000 of machinery, and acceptance of a $101,000 note payable.
view transaction list
journal entry worksheet
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record the issuance of 48,500 shares of $3 par value common stock for $315,500 cash.
note: enter debits before credits.
transaction general journal debit credit
a.

Explanation:

Step1: Calculate par - value of stock issued

The par - value of each share is $3 and 48,500 shares are issued. So the par - value of the stock issued is $3\times48,500 = 145,500$.

Step2: Calculate additional paid - in capital

The cash received is $315,500. The additional paid - in capital is the cash received minus the par - value of the stock issued, i.e., $315,500−145,500 = 170,000$.

Step3: Record journal entry

Debit the cash account for the amount of cash received, credit the common stock account for the par - value of the stock issued, and credit the additional paid - in capital account for the excess amount.

Transaction	General Journal	Debit	Credit
	Common Stock		145,500
	Additional Paid - in Capital, Common Stock		170,000

Answer:

Transaction	General Journal	Debit	Credit
	Common Stock		145,500
	Additional Paid - in Capital, Common Stock		170,000