QS 13-2 Prepare the journal entry to record each separate transaction. (a) On March 1, DVD Co. issues 44,500?

Question

Prepare the journal entry to record each separate transaction. (a) On March 1, DVD Co. issues 44,500

shares of $4 par value common stock for $255,000 cash. (b) On April 1, GT Co. issues no-par value

common stock for $50,000 cash. (c) On April 6, MTV issues 2,000 shares of $20 par value common

stock for $35,000 of inventory, $135,000 of machinery, and acceptance of a $84,000 note payable.

Answer 1

Do your own homework

Answer 2

(a) On March 1, DVD Co. issues 44,500 shares of $4 par value common stock for $255,000 cash

Dr  Cash $255,000

Cr  Common stock $178,000

Cr  Paid-in Capital in Excess of Par Value $77,000

(b) On April 1, GT Co. issues no-par value common stock for $50,000 cash

Dr  Cash $50,000

Cr  Common stock $50,000

(c) On April 6, MTV issues 2,000 shares of $20 par value common stock for $35,000 of inventory, $135,000 of machinery, and acceptance of a $84,000 note payable

Dr  Inventory $35,000

Dr  Machinery $135,000

Cr  Common stock $40,000

Cr  Paid-in Capital in Excess of Par Value $46,000

Cr  Note payable $84,000

Answer 3

Dont you have an accountant or statistician in your company?