Question
BWireless Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes BWireless to issue 120,000 shares of
BWireless Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes BWireless to issue 120,000 shares of 9%, $50 par value cumulative preferred stock and 170,000 shares of $3 par value common stock. During the first month, BWireless completed the following transactions:
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
24,000
shares of common stock for a building with a market value of
$160,000.
Date | Accounts and Explanation | Debit | Credit | ||
Oct. 2 | |||||
Part 2
Oct.
6: Issued
850
shares of preferred stock for
$170
per share.
Date | Accounts and Explanation | Debit | Credit | ||
Oct. 6 | |||||
Part 3
Oct.
9: Issued
13,000
shares of common stock for cash of
$52,000.
Date | Accounts and Explanation | Debit | Credit | ||
Oct. 9 | |||||
Part 4
Oct.
10: Declared a
$16,000
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 | |||||
Part 5
Oct.
25: Paid the cash dividend.
Date | Accounts and Explanation | Debit | Credit | ||
Oct. 25 | |||||
Part 6
Requirement 2. Prepare the stockholders' equity section of
BWireless's
balance sheet at
October
31,
2018.
Assume
BWireless's
net income for the month was
$87,000.
(Assume all temporary accounts have been closed prior to preparing the stockholders' equity section of the balance sheet.)
B-Wireless Wireless |
Balance Sheet (Partial) |
October 31, 2018 |
Stockholders' Equity | |||||||
Paid-In Capital: | |||||||
Total Paid-In Capital | |||||||
Total Stockholders' Equity |
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