50.1K

Verified Solution

Link Copied!

B- Mobile Wireless needed additional captital to expand, so the business incorporated. The charter from state of Georgia authorized B- Mobile to issue $80,000 shares of 9%, $50 par value cumulative preferred stock and 170,000 shares of $4 par value common stock. During the first month, B- Mobile completed the following transactions:

i More Info Oct. 2 Issued 23,000 shares of common stock for a building with a market value of $140,000. 6 Issued 700 shares of preferred stock for $100 per share. 9 Issued 12,000 shares of common stock for cash of $60,000. 10 Declared a $21,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock 25 Paid the cash dividend. Print Done Requirement 1. Record the transactions in the general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Oct. 2: Issued 23,000 shares of common stock for a building with a market value of $140,000. Date Accounts and Explanation Debit Credit Oct. 2 I I | INT | II II III | III LI Oct. 6: Issued 700 shares of preferred stock for $100 per share. Date Accounts and Explanation Oct. 6 Debit Credit Oct. 9: Issued 12,000 shares of common stock for cash of $60,000. Accounts and Explanation Debit Credit Oct IIIIII II III III III II I II || 1 III III III III III III II III III || | Oct. 10: Declared a $21,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. Date Accounts and Explanation Debit Credit Oct. 10 Oct. 25: Paid the cash dividend. Date Accounts and Explanation Debit Credit Oct. 25 Read the requirements. Requirement 2. Prepare the stockholders' equity section of B - Mobile's balance sheet at October 31, 2018. Assume B-Mobile's net income for the month was $93,000. (Assume all temporary accounts have been closed prior to preparing the stockholders' equity section of the balance sheet.) B-Mobile Wireless Balance Sheet (Partial) October 31, 2018 Stockholders' Equity Redu ulecuumCILJ. B-Mobile Wireless Balance Sheet (Partial) October 31, 2018 Stockholders' Equity Paid-In Capital: Total Paid-In Capital Total Stockholders' Equity B-Mobile Wireless Balance Sheet (Partial) October 31, 2018 Stockholders' Equity Paid-In Capital: Common Stock-$4 Par Value; Paid-In Capital in Excess of Par-Common Paid-In Capital in Excess of Par-Preferred Preferred Stock-9%, $50 Par Value; Retained Earnings Total Paid-In Capital Total Stockholders' Equity Choose from any list or enter any number in the input fields and then continue to the next question. B-Mobile Wireless Balance Sheet (Partial) October 31, 2018 Stockholders' Equity Paid-In Capital: shares at cost shares authorized shares issued and outstanding Total Paid-In Capital Total Stockholders' Equity Accounts and Explanation Building Cash Cash Dividends Common Stock-$4 Par Value Dividends PayableCommon Dividends PayablePreferred Paid-In Capital in Excess of ParCommon Paid-In Capital in Excess of Par-Preferred Preferred Stock-$50 Par Value Retained Earnings Treasury Stock-Common

Answer & Explanation Solved by verified expert

See Answer