Question
D-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes D-Mobile to issue 50,000 shares of
D-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes D-Mobile to issue 50,000 shares of 8%, $50 par value cumulative preferred stock and 160,000 shares of $4 par value common stock. During the first month, D-Mobile completed the following transactions:
Oct. 2 | Issued 19,000 shares of common stock for a building with a market value of $240,000. |
6 | Issued 600 shares of preferred stock for $140 per share. |
9 | Issued 11,000 shares of common stock for cash for $5 per share |
10 | Declared a $19,000 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. Purchased 600 shares of the companys common stock , paying cash of $6 per share. |
Requirements
1. Record the transactions by preparing journal entries in the general journal.
2. Prepare the stockholders equity section of T-Mobile's balance sheet at October 31, 2018. Assume T-Mobile's net income for the month was $94,000.
NOTE : Use the Exhibit 13-7 on page 700 of your text book as your model for the Stockholders section of the balance sheet.
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