Clothing Frontiers began operations on January 1 and engages in the following tr

Question

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 $34 per share.

April 1 Issues 110 additional shares of common stock for $38 per share.

Record the transactions, assuming Clothing Frontiers has either $1 par value common stock or $1 stated value stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the issuance of 700 shares of common stock for $34 per share.

2. Record the issuance of 110 additional shares of common stock for $38 per share.

Explanation / Answer

Journal Entries 1 Date Description Debit Credit Jan-1 Cash ($ 34* 700) 23800         Common Stock ($ 1 * 700) 700          Paid in Capital in excess of Par -Common Stock ($(34-1)*700) 23100 (700 Shares of $ 1 par value issued at $ 34 per Share) Apr-1 Cash ($ 38* 110) 4180         Common Stock ($ 1 * 110) 110          Paid in Capital in excess of Par -Common Stock ($(38-1)*110) 4070 (110 Shares of $ 1 par value issued at $ 38 per Share)

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