Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes

AWireless

to issue

70,000

shares of

7%,

$50

par value cumulative preferred stock and

130,000

shares of

$2

par value common stock. During the first month,

AWireless

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

20,000

shares of common stock for a building with a market value of

$270,000.

Date			Accounts and Explanation	Debit	Credit
Oct. 2

Oct.

6: Issued

1,000

shares of preferred stock for

$100

per share.

Date			Accounts and Explanation	Debit	Credit
Oct. 6

Oct.

9: Issued

12,000

shares of common stock for cash of

$72,000.

Date			Accounts and Explanation	Debit	Credit
Oct. 9

Oct.

10: Declared a

$14,000

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

Oct.

25: Paid the cash dividend.

Date			Accounts and Explanation	Debit	Credit
Oct. 25

Requirement 2. Prepare the stockholders' equity section of

AWireless's

balance sheet at

October

31,

2024.

Assume

AWireless's

net income for the month was

$95,000.

(Assume all temporary accounts have been closed prior to preparing the stockholders' equity section of the balance sheet.)

A-Wireless Wireless

Balance Sheet (Partial)

October 31, 2024

Stockholders' Equity
	Paid-In Capital:
	Total Paid-In Capital
	Total Stockholders' Equity

Oct. 2	Issued 20,000 shares of common stock for a building with a market value of $270,000.
Oct. 6	Issued 1,000 shares of preferred stock for $100 per share.
Oct. 9	Issued 12,000 shares of common stock for cash of $72,000.
Oct. 10	Declared a $14,000 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.