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 ...

Requirement 1 Date Accounts and Explanation Debit Credit Sep 6 Cash 8250 Common Sto ...

The charter for WCAP-TV, Inc. authorizes the company to issue 100,000 shares of $2, no-par preferred stock

Question:

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 with $1 par value.
During its start-up phase, WCAP completed the following transactions:
Sep. 6 Issued 275 shares of 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 in exchange for land with a market value of $ 19,000.
Requirements
1. Record the transactions in the general journal.
2. Prepare the stockholders’ equity section of the WCAP-TV at September 30, 2016, assuming WCAP-TV, Inc. had net income of $37,000 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...