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.
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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