Answer:
Dr Merchandise inventory 50,000
Dr Machinery 155,000
Dr Notes receivable 100,000
Cr Common stock 62,000
Cr Additional paid in capital in excess of par value 243,000
Explanation:
All outstanding stocks must be recorded at par value: 3,100 shares x $20 = $62,000. Any mount paid for the stocks in excess of par value must be recorded in the additional paid in capital in excess of par value account : $305,000 - $62,000 = $243,000
