Question

Eestion 14 The charter for WPAC-TV, Inc, authorizes the company to issue 100,000 shares of $4, no par preferred stock and 5 following transactions: i (Click on the icon to view the transactions) Read the requirements Sep. 14: Issued 1,900 shares of common stock in exchange for land with a market value of $23,000. Date Accounts and Explanation Debit Credit Sep. 14 Requirement 2. Prepare the stockholders' equity section of the WPAC-TV balance sheet at September 30, 2018, WPAC-TV. Inc Choose from any list or enter any number in the input fields and then continue to the next question, Search the web and Windows o e a a

Answer 1

Solution:

1. Journal entries:

No. of Event	Date	Account title and Explanation	Debit	Credit
1.	Sep.6	Cash	$9,000
		Additional paid in capital in excess of par Value ($9000 -$300)		$8,700
		Common stock (300 × $1)		$300
		(To record issue of common stock)
2.	Sep.12	Cash	$29,000
		Additional paid in capital in excess of par value ($29,000 - $3,000)		$26,000
		Preferred stock (750 × $4)		$3,000
		(To record issue of preferred stock)
3.	Sep.14	Land	$23,000
		Additional paid in capital in excess of par value		$21,100
		Common stock($1 × 1900 shares)		$1,900
		(To record issue of common stock )

2.

WPAC - TV Inc.

Balance Sheet (Partial)

September 30, 2018

Shareholders'Equity Section
Particular	Amount
Common stock (500,000, authorized, $2,200 issued, $1 par value)	$22,00
Paid in capital in Excess of stated value common stock ($9000 - $300) + ($23000 - $1,900)	$29,800
Preferred stock (100,000 authorized, 750 issued, $4 par value )	$3,000
Paid - in Capital in Excess of Par - preferred stock ($29,000 - $750 × $4)	$26,000
Retained Earnings	$30,000

Total Shareholders'Equity = $91,000