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1 + M ezto.mheducation.com/hm.tpx?0.675262806 1712828-1461624039476.-Homework 9

ID: 2474913 • Letter: 1

Question

1 + M ezto.mheducation.com/hm.tpx?0.675262806 1712828-1461624039476.-Homework 9 Reader Grades - FIN 2123-PERSONAL FINANCE-SEC TH 513 - Oklahoma State University Homework 9 [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 500 shares of common stock for $33 per share April 1 Issues 120 additional shares of common stock for $37 per share 1.10,.00 points Required information 10.00 points Required 1. Record the transactions, assuming Clothing Frontiers has no-par common stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet Record the issuance of 500 shares of common stock for $33 per share Date General Journal Debit Credit January 01 No journal entry required Accounts payable Accounts receivable Additional paid-in capital Advertising expense Bonds payable Cash Enter debits before credits done record entry

Explanation / Answer

When issue of common stock at no par value then the journal entry would be

Jan 1

Cash dr (500 shares @ $ 33 each)                                              16500

    Common Stock                                                                                                             16500

Apr 1

Cash dr (120 shares @ $ 37 each)                                              4440

    Common Stock                                                                                                             4440

When issue of common stock has either $ 1 par value or $ 1 stated value common stock.

Jan 1

Cash dr (500 shares @ $ 33 each)                                              16500

    Common Stock                                                                                                             500

    Paid in capital in excess of stated value                                                           16000

Jan 1

Cash dr (120 shares @ $ 37 each)                                              4440

    Common Stock                                                                                                             120

    Paid in capital in excess of stated value                                                           4320