Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. p13-41a journalizing stock issuance and cash divid

P13-41A Journalizing stock issuance and cash dividends and preparing the stockholders' equity section of the...

70.2K

Verified Solution

Question

Accounting

image
P13-41A Journalizing stock issuance and cash dividends and preparing the stockholders' equity section of the balance sheet D-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes D-Mobile to issue 50,000 shares of 8%, $50 par value cumulative preferred stock and 160,000 shares of $4 par value co mmon stock. During the first month, D-Mobile completed the following transactions: Oct. 2 Issued 19,000 shares of common stock for a building with a market value of $240,000 6 Issued 600 shares of preferred stock for $140 per share. 9 Issued 11,000 shares of common stock for cash of $55,000. 10 Declared a $19,000 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. Requirements 1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of D-Mobile's balance sheet at October 31, 2018. Assume D-Mobile's net income for the month was $94,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students