Answer:
A. Dr Cash $327,500
Cr Common Stock $210,000
Cr Capital Paid In $117,500
B. Dr Cash $90,000
Cr Common Stock $90,000
C. Dr Inventory $59,000
Dr Machinery $185,000
Cr Note Payable $95,000
Cr Common Stock $80,000
Cr Capital Paid In $69,000
Explanation:
Preparation of the issuer's journal entry
A. Dr Cash $327,500
Cr Common Stock $210,000
(52,500 shares* $4 par value )
Cr Capital Paid In $117,500
($327,500-$210,000)
B. Dr Cash $90,000
Cr Common Stock $90,000
C. Dr Inventory $59,000
Dr Machinery $185,000
Cr Note Payable $95,000
Cr Common Stock (4000 * $20) $80,000
Cr Capital Paid In $69,000
($59,000+$185,000-$95,000-$80,000)
