C-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes C-Mobile to issue 120,000 shares of 9%, $150 par value cumulative preferred stock, and 140,000 shares of $3 par value common stock. During the first month, C-Mobile completed the following transactions:
Oct. 2 Issued 18,000 shares of common stock for a building with a market value of $260,000.
6 Issued 650 shares of preferred stock for $160 per share.
9 Issued 14,000 shares of common stock for cash of $84,000.
10 Declared a $13,000 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 C-Mobile's balance sheet at October 31, 2018. Assume C-Mobile's net income for the month was $95,000.