Each of the following scenarios pertains to the issuance of common stock.For each of these situations, prepare the issuer's journal entry.a. On June 14, Nacho Mama's Cantina of Baltimore, MD issues 46,000 shares of $5 par value common stock for $308,000 cash.b. On July 21, Harry's Pottery issues no-par value common stock for $77,000 cash.c. On August 8, Happy Harry's Wholesale Jalapenos issues 2,700 shares of $25 par value common stock for $170,000 of machinery,$46,000 of inventory, and a note payable in the amount of $96,000.View transaction listJournal entry worksheet<1Happy Harry's Wholesale Jalapenos issues 2,700 shares of $25 par valuecommon stock for $170,000 of machinery, $46,000 of inventory, and a notepayable in the amount of $96,000.Note: Enter debits before credits.TransactionC.2Record entryGeneral JournalClear entryDebitCreditHelpView general journal

A company issue its shares to the investors for the purpose of raising capital to start its Business…

Answered: Each of the following scenarios…

Each of the following scenarios pertains to the issuance of common stock. For each of these situations, prepare the issuer's journal entry.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Each of the following scenarios pertains to the issuance of common stock.
For each of these situations, prepare the issuer's journal entry.
a. On June 14, Nacho Mama's Cantina of Baltimore, MD issues 46,000 shares of $5 par value common stock for $308,000 cash.
b. On July 21, Harry's Pottery issues no-par value common stock for $77,000 cash.
c. On August 8, Happy Harry's Wholesale Jalapenos issues 2,700 shares of $25 par value common stock for $170,000 of machinery,
$46,000 of inventory, and a note payable in the amount of $96,000.
View transaction list
Journal entry worksheet
<
1
Happy Harry's Wholesale Jalapenos issues 2,700 shares of $25 par value
common stock for $170,000 of machinery, $46,000 of inventory, and a note
payable in the amount of $96,000.
Note: Enter debits before credits.
Transaction
C.
2
Record entry
General Journal
Clear entry
Debit
Credit
Help
View general journal

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