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.
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.