Questions: 1. Record the transactions in the general journal. 2. Prepare the stockholder's equity section of D-Cell's balance sheet at October 31, 2018. Assume D-Cell's net income for the month was $87,000.

D-Cell Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes D-Cell to issue 110,000 shares of 6%, $50 par value cumulative preferred stock and 100,000 shares of $2 par value common stock. During the first month, D-Cell completed the following transactions: Oct. 2 - Issued 25,000 shares of common stock for a building with a market value of $110,000 Oct. 6 - Issued 800 shares of preferred stock for $110 per share. Oct. 9 - Issued 18,000 shares of common stock for cash of $72,000 Oct. 10 - Declared a $21,000 cash dividend for stockholders of record on Oct. 20. Use separate dividends payable account for preferred and common stock. Oct. 25 - Paid the cash dividend