Chapter 13, Problem 13.21E

1.

To determine

No-par preferred stock: The preferred stock that is issued at its fair market value is known as no-par preferred stock. The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receives a share of profit from the profits earned by the corporation.

Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.

To Journalize: the issuance of common stock for Incorporation W.

To determine

To Journalize: the issuance of no-par preferred stock for Incorporation W.

To determine

To journalize: the purchase of land in exchange common stock issuance by Incorporation W.

2.

To determine

To Prepare: the stockholders’ section of the balance sheet of Incorporation W as on September 30, 2016.