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.
1. Record the transactions in the general journal.
2. Prepare the stockholders’ equity section of the KCAS-TV balance sheet at September 30, 2012.