Record the issuance of common stock Clothing Frontiers began operations on Janua

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Record the issuance of common stock Clothing Frontiers began operations on January 1.and engages in the following transactions during the year related to stockholders' equity. January 1 Issues 500 shares of common stock for $20 per share. April 1 Issues 200 additional shares of common stock for $24 per share. Required: Record the transactions, assuming Clothing Frontiers has no-par common stock. Record the transactions, assuming Clothing Frontiers has either $1 par value common stock or $1 stated value stock. Determine the amount of preferred stock dividends Nathan's Athletic Apparel has 2,000 shares of 6%, $100 par value preferred stock the company issued at the beginning of 2014. All remaining shares are common stock. The company was not able to pay dividends in 2014. but plans to pay dividends of $30.000 in 2015. Required: Assuming the preferred stock is cumulative, how much of the $30,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2015? Assuming the preferred stock is noncumulative, how much of the $30,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2015? Record common stock, preferred stock, and dividend transactions Italian Stallion has the following transactions during the year related to stockholders' equity. February 1 Issues 4,000 shares of no-par common stock for $12 per share. May 15 Issues 1,000 shares of $10 par value preferred stock for $11 per share. October 1 Declare a cash dividend of $1.00 per share to all stockholders of record (both common and preferred) on October 15. October 15 Date of record. October31 Pay the cash dividend declared on October 1. Required: Record each of these transactions. Record issuance of stock and treasury stock transactions Finishing Touches has two classes of stock authorized: 6%, $100 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2015. its first year of operations: January 2 Issues 100,000 shares of common stock for $15 per share. February 6 Issues 200 shares of 6% preferred stock for $120 per share. September 10 Purchases 10,000 shares of its own common stock for $18 per share. December 15 Reissues 5,000 shares of treasury stock at $20 per share. Required: Record each of these transactions.

Explanation / Answer

E-10-3 Debit Credit 1 Has no par common Stock Jan-01 Cash A/C dr.           10,000 To Common Stcok        10,000 Apr-01 Cash A/C dr.             4,800 To Common Stcok          4,800 1 Has $ 1 par value Jan-01 Cash A/C dr.           10,000 To Common Stcok             500 To Paid in capital in excess of stated value          9,500 Apr-01 Cash A/C dr.             4,800 To Common Stcok             200 To Paid in capital in excess of stated value          4,600 E-10-4 If preferred stock is cummulative 1 Divedend per year for preferred Stock 2000*100*6% =           12,000 Dividend paid to preferred stock in 2015 is for 2014           12,000 for 2015           12,000        24,000 Total Dividend paid to preferred stock in 2015 is        24,000 Dividend paid to Common Stock (30000-24000)          6,000 2 If preferred stock is non cummulative Divedend per year for preferred Stock 2000*100*6% =           12,000 Dividend paid to preferred stock in 2015 is for 2015           12,000 Total Dividend paid to preferred stock in 2015 is        12,000 Dividend paid to Common Stock (30000-12000)        18,000 E-10-5 Feb-01 Cash A/C dr. 48000 To Common stock 48000 May-15 Cash A/C dr. 11000 To Preferred stock 10000 To Premium on issue of Preferred Stock 1000 Oct-15 Dividend A/C 5000 To Dividend Payable A/C dr. 5000 Oct-31 Dividend Payable A/C dr. 5000 To Cash A/C 5000 E-10-6 Jan-02 Cash A/C dr.      1,500,000 To Common stock      100,000 To Paid in capital in excess of stated value 1,400,000 Feb-06 Cash A/C dr.         240,000 To Preferred Stock      200,000 To Paid in capital in excess of stated value        40,000 Sep-10 Common Stock 10000 Paid in capital in excess of stated value 170000 To cash 180000 Dec-15 Cash A/C dr. 100000 To Tresury Stock 100000

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