The charter for kcas-tv, inc., authorizes the company to issue

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: 

 

Sept 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 valued at $18,000. 

      30   Closed net income of $32,000 into Retained earnings. 

 

 

Requirements:

1. Record the transactions in the general journal. 

2. Prepare the stockholders’ equity section of the KCAS-TV balance sheet at September 30, 2012.

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