Question
Oct. 2 Issued 23,000 shares of common stock for a building with a market value of $260,000. Oct. 6 Issued 550 shares of preferred stock
Oct. 2 | Issued 23,000 shares of common stock for a building with a market value of $260,000. |
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Oct. 6 | Issued 550 shares of preferred stock for $160 per share. |
Oct. 9 | Issued 18,000 shares of common stock for cash of $90,000. |
Oct. 10 | Declared a $15,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. |
Oct. 25 | Paid the cash dividend. |
Assume CWireless's net income for the month was $90,000.
CWireless Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes CWireless to issue 60,000 shares of 6%, $150 par value cumulative preferred stock and 130,000 shares of $3 par value common stock. During the first month, CWireless 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
23,000
shares of common stock for a building with a market value of
$260,000.
Date | Accounts and Explanation | Debit | Credit | ||
Oct. 2 |
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Oct.
6: Issued
550
shares of preferred stock for
$160
per share.
Date | Accounts and Explanation | Debit | Credit | ||
Oct. 6 |
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Oct.
9: Issued
18,000
shares of common stock for cash of
$90,000.
Date | Accounts and Explanation | Debit | Credit | ||
Oct. 9 |
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Oct.
10: Declared a
$15,000
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 |
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Oct.
25: Paid the cash dividend.
Date | Accounts and Explanation | Debit | Credit | ||
Oct. 25 |
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Requirement 2. Prepare the stockholders' equity section of
CWireless's
balance sheet at
October
31,
2024.
Assume
CWireless's
net income for the month was
$90,000.
(Assume all temporary accounts have been closed prior to preparing the stockholders' equity section of the balance sheet.)
C-Wireless Wireless |
Balance Sheet (Partial) |
October 31, 2024 |
Stockholders' Equity | |||||||
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| Total Paid-In Capital |
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| Total Stockholders' Equity |
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