(L.OBJ. 3) Issuing stock and preparing the stockholders’ equity section of the balance s...

(L.OBJ. 3) Issuing stock and preparing the stockholders’ equity section of the balance sheet [15—20 min]

The charter for WPAC-TV authorizes the company to issue 100,000 shares of $3, no-par preferred stock and 500,000 shares of common stock with $1 par value. During its start-up phase, WPAC completed the following transactions:

Requirements

1. Record the transactions in the general journal.

2. Prepare the stockholders’ equity section of the WPAC-TV balance sheet at August 31, 2010.