On January 1, 2019, Frontier Corporation had $1,000,000 of common stock outstanding that was issued at par: It also had retained earnings of $780,000. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $400,00 for the year.

Instruction

1. Par value is $10, and market price is $18.
2. Par value is $5, and market price is $20.

Solution