Northeast Wireless, Inc. needed additional capital to expand, so the business incorporated. The charter from the state of Vermont authorizes Northeast Wireless, Inc. to issue 40,000 shares of 10%, $50 par value cumulative preferred stock, and 100,000 shares of $1 par value common stock. During the first month, Northeast Wireless, Inc. completed the following transactions: 

Assume Northeast Wireless, Inc.’s net income for the month was $82,000. 

Requirements 

1. Record the transactions in the general journal. 

2. Prepare a statement of stockholders’ equity for Northeast Wireless, Inc. for the month ended October 31, 2025. 

3. Prepare the stockholders’ equity section of Northeast Wireless, Inc.’s balance sheet at October 31, 2025.

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Oct. 2 6 9 10 25 Issued 21,000 shares of common stock for a building with a fair value of $240,000. Issued 600 shares of preferred stock for $80 per share. Issued 11,000 shares of common stock for cash of $20,000. Declared a $12,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. Paid the cash dividend.