Question
Problem 5 : P13-41A Background: D-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes D-Mobile
Problem 5 : P13-41A
Background:
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. D-Mobile entered into the transactions listed in the Transactions section below during October 2018.
Assignment:
1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction.
2) Click the Reports tab and review the results of recording these transactions on the General Ledger.
3) Click Submit Work when complete.
Transactions:
10/02/2018-- Issued 19,000 shares of common stock for a building with a market value of $240,000.
10/06/2018-- Issued 600 shares of preferred stock for $140 per share.
10/09/2018-- Issued 11,000 shares of common stock for cash of $55,000.
10/10/2018-- Declared a $19,000 cash dividend for stockholders of record on October 20. Use a separate dividends payable account for preferred and common stock.
10/25/2018-- Paid the cash dividend.
Account # | Description | Type |
---|---|---|
10100 | Cash | Current Asset |
10150 | Equity Investments | Current Asset |
10400 | Accounts Receivable | Current Asset |
11000 | Land | Property, Plant, and Equipment |
11150 | Building | Property, Plant, and Equipment |
20100 | Accounts Payable | Current Liability |
20250 | Salaries Payable | Current Liability |
20650 | Dividends Payable - Preferred | Current Liability |
20700 | Dividends Payable - Common | Current Liability |
30400 | Preferred Stock - $50 Par Value | Stockholders' Equity |
30450 | Paid-In Capital in Excess of Par - Preferred | Stockholders' Equity |
30500 | Common Stock - $4 Par Value | Stockholders' Equity |
30550 | Paid-In Capital in Excess of Par - Common | Stockholders' Equity |
30700 | Retained Earnings | Stockholders' Equity |
30850 | Cash Dividends | Dividends - Common |
40100 | Sales Revenue | Sales Revenue |
50100 | Cost of Goods Sold | Cost of Goods Sold |
50350 | Salaries Expense | Operating Expense |
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