The charter for KCAS-TV, Inc. authorizes the company to issue 100,000 shares of $ 4, no-par preferred

Question:

The charter for KCAS-TV, Inc. authorizes the company to issue 100,000 shares of $ 4, no-par preferred stock and 500,000 shares of common stock with $ 1 par value. During its start-up phase, KCAS completed the following transactions:

Sep. 6 Issued 275 shares of common stock to the promoters who organized the corporation, receiving cash of $ 8,250.

12 Issued 400 shares of preferred stock for cash of $ 20,000.

14 Issued 1,600 shares of common stock in exchange for land with a market value of $ 18,000.

Requirements

1. Record the transactions in the general journal.

2. Prepare the stockholders’ equity section of the KCAS-TV balance sheet at September 30, 2014, assuming KCAS-TV, Inc. had net income of $ 32,000 for the month.

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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...