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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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