Question

part 1
Required information [The following information applies to the questions displayed below.) 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 $50 per share. April 1 Issues 110 additional shares of common stock for $54 per share. Required: 1. Record the transactions, assuming Clothing Frontiers has no-par common stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the issuance of 700 shares of common stock for $50 per share. Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record entry View general journal Clear entry
part 2

Answer 1

Ans. 1
	Date	General Journal	Debit	Credit
	1-Jan	Cash (700 * $50)	$35,000
		Common stock		$35,000
		(To record no par common stock issued)
	1-Apr	Cash   (110 * $54)	$5,940
		Common stock		$5,940
		(To record no par common stock issued)
Ans. 2	Date	General Journal	Debit	Credit
	1-Jan	Cash (700 * $50)	$35,000
		Common stock (700 * $1)		$700
		Paid in capital in excess of par		$34,300
		(Common shares issued on premium)
	*Paid in capital in excess of par value = $35,000 - $700 = $34,300
	1-Apr	Cash   (110 * $54)	$5,940
		Common stock (110 * $1)		$110
		Paid in capital in excess of par		$5,830
		(Common shares issued on premium)
	*Paid in capital in excess of par value = $5,940 - $110 = $5,830