Question: The charter for Zoom Inc authorizes the company to issue

The charter for Zoom, Inc., authorizes the company to issue 900,000 shares of $3, no-par preferred stock and 1,400,000 shares of common stock with $6 par value. During its startup phase, Zoom, Inc., completed the following transactions:

Oct 6 Issued 300 shares of common stock to the promoters who organized the corporation, receiving cash of $9,000.
12 Issued 500 shares of preferred stock for cash of $26,000.
14 Issued 1,600 shares of common stock in exchange for land with a marketvalue of $18,000.

1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of the Zoom’s balance sheet at December 31 , 201 2. Assume that the company earned net income of $32,000 during this period.

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  • CreatedApril 29, 2014
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