Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 43,000 shares of $3 par value common stock for $299,000 cash. On April 1, OP Co. issues no-par value common stock for $71,000 cash. On April 6, MPG issues 2,100 shares of $20 par value common stock for $40,000 of inventory, $140,000 of machinery, and acceptance of a $90,000 note payable.

March 1

Cash $299,000 (debit)

Common Stock $129,000 (credit)

Share Premium $170,000 (credit)

April 1

Cash $71,000 (debit)

Common Stock $71,000 (credit)

April 6

Inventory $40,000 (debit)

Machinery $140,000 (debit)

Common Stock $42,000 (credit)

Share Premium $48,000 (credit)

Note Payable $90,000 (credit)

Explanation:

Any cash paid in in excess of the par value for par value share is Accounted for in the Share Premium reserve.

No Par Value share do not have a Share Premium Reserve.