The charter for ASAP TV, Inc authorizes the company to issue 100,000 shares of $5, no par preferred stock and 500,000 shares of common stock with $1 par value During its start up phase, ASAP TV completed the following transactions Sep 6 Issued 550 shares of common stock to the promoters who organiz...

Requirement 1 Date Accounts and Explanation Debit Credit Sep 6 Cash 16500 Common St ...

The charter for ASAP-TV, Inc. authorizes the company to issue 100,000 shares of $5, no-par preferred stock

Question:

The charter for ASAP-TV, Inc. authorizes the company to issue 100,000 shares of $5, no-par preferred stock and 500,000 shares of with $1 par value. During its start-up phase, ASAP-TV completed the following transactions:
Sep. 6 Issued 550 shares of to the promoters who organized the corporation, receiving cash of $16,500.
12 Issued 400 shares of preferred stock for cash of $23,000.
14 Issued 1,500 shares of in exchange for land with a market value of $17,000.
Requirements
1. Record the transactions in the general journal.
2. Prepare the stockholders' equity section of the ASAP-TV at September 30, 2018, assuming ASAP-TV, Inc. had net income of $38,000 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...