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

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 < 1 2 3 record the issuance of 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. note: enter debits before credits. transaction general journal debit credit c. record entry clear view general journal
Answer
Explanation:
Step1: Calculate par - value of issued stock
The par - value of each share is $25 and 3,200 shares are issued. So the par - value of the issued stock is $25\times3200 = $80,000.
Step2: Determine total assets received
The company received $51,000 of inventory, $160,000 of machinery and accepted a $101,000 note payable. The total value of assets received is $51000 + 160000+101000=$312,000.
Step3: Calculate additional paid - in capital
The additional paid - in capital is the total value of assets received minus the par - value of the stock. So it is $312000 - 80000=$232,000.
Step4: Record journal entry
Debit Inventory for $51,000, debit Machinery for $160,000, debit Notes Payable (as it is accepted) for $101,000. Credit Common Stock for $80,000 and credit Additional Paid - in Capital, Common Stock for $232,000.
| Transaction | General Journal | Debit | Credit |
|---|---|---|---|
| c. | Inventory | $51,000 | |
| Machinery | $160,000 | ||
| Notes Payable | $101,000 | ||
| Common Stock | $80,000 | ||
| Additional Paid - in Capital, Common Stock | $232,000 |
Answer:
| Transaction | General Journal | Debit | Credit |
|---|---|---|---|
| c. | Inventory | $51,000 | |
| Machinery | $160,000 | ||
| Notes Payable | $101,000 | ||
| Common Stock | $80,000 | ||
| Additional Paid - in Capital, Common Stock | $232,000 |