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.

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Business

Jermaine Doyle

7 May, 15:27

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.

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Valerie Stanley · Answer 1

The journal entries are shown below:

1. Cash A/c Dr $23,800 (700 shares * $34)

To Common Stock $700 (700 shares * $1)

To Additional Paid-in Capital in excess of par - Common Stock $231,00

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

2. Cash A/c Dr $4,180 (110 shares * $38)

To Common Stock $110 (110 shares * $1)

To Additional Paid-in Capital in excess of par - Common Stock $4,070

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)