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In: Accounting

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

Please rate.

ekkarill92 answered 1 year ago
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