QS 11-5 Issuance of common stock LO P1

Prepare the issuers journal entry for each of the following separate transactions.

1. On March 1, Atlantic Co. issues 42,500 shares of $4 par value common stock for $297,500 cash.
2. On April 1, OP Co. issues no-par value common stock for $70,000 cash.
3. On April 6, MPG issues 2,000 shares of $25 par value common stock for $45,000 of inventory, $145,000 of machinery, and acceptance of a $94,000 note payable.

• 1

  Record the issuance of 42,500 shares of $4 par value common stock for $297,500 cash.

• 2

  Record the issuance of no-par value common stock for $70,000 cash.

• 3

  Record the issuance of 2,000 shares of $25 par value common stock for $45,000 of inventory, $145,000 of machinery, and acceptance of a $94,000 note payable.