Question: The charter for WCAP TV Inc authorizes the company to issue

The charter for WCAP-TV, Inc. authorizes the company to issue 100,000 shares of $2, no-par preferred stock and 500,000 shares of common stock with $1 par value.
During its start-up phase, WCAP 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 300 shares of preferred stock for cash of $24,000.
14 Issued 1,400 shares of common stock in exchange for land with a market value of $ 19,000.
1. Record the transactions in the general journal.
2. Prepare the stockholders’ equity section of the WCAP-TV balance sheet at September 30, 2016, assuming WCAP-TV, Inc. had net income of $37,000 for the month.

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  • CreatedJune 15, 2015
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