Clothing Frontiers began operations on January 1, 2012, and engages in the following transactions during the year
Question:
January 1 Issues 600 shares of common stock for $40 per share.
April 1 Issues 100 additional shares of common stock for $44 per share.
Required:
1. Record the transactions, assuming Clothing Frontiers has no-par common stock.
2. Record the transactions, assuming Clothing Frontiers has $1 par value common stock.
3. Record the transactions, assuming Clothing Frontiers' common stock has a $1 stated value, rather than a $1 par value.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Requirement 1 January 1 2012 Cash 600 shares x 40 24000 Common Stock 24000 Issue n...View the full answer
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Related Book For 
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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