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23 October, 05:24

Prepare the issuer's journal entry for each of the following separate transactions.

a. On March 1, Atlantic Co. issues 44,000 shares of $5 par value common stock for $302,000 cash.

b. On April 1, OP Co. issues no-par value common stock for $73,000 cash.

c. On April 6, MPG issues 2,300 shares of $15 par value common stock for $42,000 of inventory, $150,000 of machinery, and acceptance of a $92,000 note payable.

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  1. 23 October, 05:40
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    The answer is given below;

    Explanation:

    a. Cash Dr.$302,000

    Capital (44,000*5) Cr.$220,000

    Paid in Capital in excess of par Cr.$82,000

    b. Cash Dr.$73,000

    Capital Cr.$73,000

    c. Cash Dr.$42,000

    Capital 2,300*15 Cr.$34,500

    Paid in capital in excess of par Cr.$7,500

    Machinery Dr.$150,000

    Cash (150,000-92,000) Cr.$58,000

    Note payable Cr.$92,000
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