A - Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes A - Mobile to issue 40,000 shares of 7%, $100 par value cumulative preferred stock and 130,000 shares of $2 par value common stock. During the first month, A - Mobile completed the following transactions:

Oct. 2 Issued 21,000 shares of common stock for a building with a market value of $260,000

Oct 6. Issued 700 shares of preferred stock for $130 per share.

Oct. 9 Issued 15,000 shares of common stock for cash of $75,000.

Oct. 10 Declared a $11,000 cash dividend for stockholders of record on Oct. 20. Use a seperate Dividends Payable account for preferred and common stock.

Oct. 25 Paid the cash dividend.

Requirements

1. Record the transactions in the general journal.

2. Prepare the stockholders' equity section of A - Mobile's balance sheet at October 31, 2016. Assume A - Mobile's net income for the month was $88,000.