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.2. Record the transactions, assuming Clothing Frontiers has either $1 par value or $1 statedvalue common stock.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.