The charter for Zelkin, Inc., authorizes the company to issue 200,000 shares of $3, no-par preferred stock

Question:

The charter for Zelkin, Inc., authorizes the company to issue 200,000 shares of $3, no-par preferred stock and 900,000 shares of common stock with $1 par value. During its start-up phase, Zelkin, Inc., completed the following transactions:

2016

Apr 6 Issued 250 shares of common stock to the promoters who organized the corporation, receiving cash of $8,500.

12 Issued 550 shares of preferred stock for cash of $28,000.

14 Issued 1,100 shares of common stock in exchange for land with a market value of $23,000

Requirements

1. Record the transactions in the journal.

2. Prepare the stockholders' equity section of Zelkin's balance sheet at December 31, 2016. Assume the company earned net income of $38,000 during this period?

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...