Question

prepare the issuers journal entry for each of the following separate transactions
a. on march 1, atlantic company issues 49,000 shares of $4 par value common stock for $317,000 cash.
b. on april 1, op company issues no - par value common stock for $83,000 cash
c. on april 6, mpg issues 3,300 shares of $15 par value common stock for $52,000 of inventory, $140,000 of machinery, and acceptance of a $102,000 note payable.
journal entry worksheet
record the issuance of 49,000 shares of $4 par value common stock for $317,000 cash.
note: enter debits before credits.

Explanation:

Step1: Calculate the par - value amount

The par - value of the common stock is calculated as the number of shares times the par value per share. For 49,000 shares of $4 par value common stock, the par - value amount is \(49000\times4=\$196000\).

Step2: Calculate the additional paid - in capital

The cash received is $317,000. The additional paid - in capital is the cash received minus the par - value amount. So, \(317000 - 196000=\$121000\).

Step3: Record the journal entry

When issuing common stock, the cash account is debited for the total amount of cash received. The common stock account is credited for the par - value amount, and the additional paid - in capital account is credited for the amount in excess of par.

Answer:

Transaction	General Journal	Debit	Credit
	Common Stock		\(196000\)
	Additional Paid - in Capital		\(121000\)