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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.

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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