Question

Clothing Frontiers began operations on January 1 and engages n the following transactions during the year related to stockholders equity.
January 1 Issue 600 shares of common stock for $40 per share

April 1 Issues 100 additional shares of common stock for $44 per share.

Required:

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

Date General Journal Debit Credit
January 01
2. Record the transactions, assuming Clothing Frontiers has either $1 par value or 41 stated value common stock.

Date General Journal Debit Credit
January 01

Answer 1

Answer:

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

January 1, issuance of 600 stocks

Dr Cash 24,000

    Cr Common stock 24,000

April 1, issuance of 100 stocks

Dr Cash 4,400

    Cr Common stock 4,400

2. Record the transactions, assuming Clothing Frontiers has either $1 par value or 41 stated value common stock.

January 1, issuance of 600 stocks

Dr Cash 24,000

    Cr Common stock 600

    Cr Additional paid in capital 23,400

April 1, issuance of 100 stocks

Dr Cash 100

    Cr Common stock 100

    Cr Additional paid in capital 4,300