Ask Question
BusinessBusiness
21 March, 10:43

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 $30 per share. April 1 Issues 120 additional shares of common stock for $34 per share. Record the transactions, assuming Clothing Frontiers has either $1 par value common stock or $1 stated value stock.

1) Record the issuance of 500 shares of common stock for $30 per share.

2) Record the issuance of 120 additional shares of common stock for $34 per share.

+5
Answers (1)
  1. 21 March, 10:47
    0
    The journal entries are as follows:

    (1) on January 1,

    Cash A/c (500 * $30) Dr. $15,000

    To common stock A/c (500 * $1) $500

    To Additional paid in capital - common stock $14,500

    (To record the issuance of 500 shares of common stock for $30 per share)

    (2) on April 1,

    Cash A/c (120 * $34) Dr. $4,080

    To common stock A/c (120 * $1) $120

    To Additional paid in capital - common stock $3,960

    (to record the issuance of 120 additional shares of common stock for $34 per share.)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholders' equity. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Purchases in May were $ 60 comma 000 , while expected purchases for June and July are $ 75 comma 000 and $ 93 comma 000 , respectively. All purchases are paid 30 % in the month of purchase and 70 % in the following month.
Answers (1)
A company is interested in monitoring the variability in the weight of the fertilizer bags it produces. An appropriate control chart would be: a p-chart. a c-chart. an R-chart
Answers (1)
Why do company manager-owners smile when they ring the stock exchange bell at their IPO? A. Manager-owner are freed of burden of managing their company. B. An IPO reveals the value of the manager-owners' value. C.
Answers (1)
In an open economy, GDP is $12 trillion this year. Consumption is $8 trillion, and government spending is $2 trillion. Taxes are $0.5 trillion. Exports are $1 trillion, and imports are $3 trillion. How much is private saving
Answers (1)
Add and simplify 9/19 = 1/2
Answers (1)
New Questions in Business
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability policies: Only cover the first $50.
Answers (1)
In the resource-based view of the firm, examples of tangible resources include: Select one: a. outstanding customer service, innovativeness of products, and reputation b.
Answers (1)
Off-Line Co. has 9,000 units in beginning finished goods. The sales budget shows expected sales to be 36,000 units. If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?
Answers (1)
g resh bought 1,000 shares of Ibis Corporation stock for $5,600 on January 15, 2017. On December 31, 2019, she sold all 1,000 shares of her Ibis stock for $4,800.
Answers (1)
The last stage of the new-product development process is
Answers (1)
Home » Business » 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 $30 per share.
Sign Up Forgot Password?