prepare the issuers journal entry for each of the following separate transactions.\na. on march 1, atlantic…

prepare the issuers journal entry for each of the following separate transactions.\na. on march 1, atlantic company issues 48,500 shares of $3 par - value common stock for $315,500 cash.\nb. on april 1, op company issues no - par value common stock for $82,000 cash.\nc. 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.\nview transaction list\njournal entry worksheet\n< 1 2 3\nrecord the issuance of 48,500 shares of $3 par value common stock for $315,500 cash.\nnote: enter debits before credits.\ntransaction general journal debit credit\na.

prepare the issuers journal entry for each of the following separate transactions.\na. on march 1, atlantic company issues 48,500 shares of $3 par - value common stock for $315,500 cash.\nb. on april 1, op company issues no - par value common stock for $82,000 cash.\nc. 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.\nview transaction list\njournal entry worksheet\n< 1 2 3\nrecord the issuance of 48,500 shares of $3 par value common stock for $315,500 cash.\nnote: enter debits before credits.\ntransaction general journal debit credit\na.

Answer

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
a. Cash 315,500
Common Stock 145,500
Additional Paid - in Capital, Common Stock 170,000

Answer:

Transaction General Journal Debit Credit
a. Cash 315,500
Common Stock 145,500
Additional Paid - in Capital, Common Stock 170,000