Clothing Frontiers began operations on January 1 and engages in the following transactions during the year...

Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholders’ equity.

January 1 Issues 700 shares of common stock for $44 per share. April 1 Issues 110 additional shares of common stock for $48 per share.

Required:

1. Record the transactions, assuming Clothing Frontiers has no-par common stock.

2. Record the transactions, assuming Clothing Frontiers has either $1 par value or $1 stated value common stock.

Solutions

Expert Solution

	1 No par
	Account	Debit	Credit
Jan. 1	Cash	$ 30,800
	Common stock		$ 30,800

Apr. 1	Cash	$ 5,280
	Common stock		$ 5,280


	2 par
	Account	Debit	Credit
Jan. 1	Cash	$ 30,800
	Common stock		$ 700
	Additional paid in capital in excess of par		$ 30,100

Apr. 1	Cash	$ 5,280
	Common stock		$ 110
	Additional paid in capital in excess of par		$ 5,170

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ekkarill92 answered 1 year ago

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