Answer:
The Journal entries are as follows:
(i) On March 1,
Cash A/c Dr. $297,500
To common stock (42,500 × $4) $170,000
To paid in capital in excess of par value $127,500
(To record the issuance of common stock)
(ii) On April 1,
Cash A/c Dr. $70,000
To common stock $70,000
(To issue no-par value common stock)
(iii) On April 6,
Inventory A/c Dr. $45,000
Machinery A/c Dr. $145,000
To common stock (2,000 × $25) $50,000
To paid in capital in excess of par value $46,000
To Note payable $94,000
(To record the issuance of common stock)
