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

Upper B minus WirelessBWireless

to issue

100 comma 000100,000

shares of

7 %7%,

$5050

par value cumulative preferred stock and

100 comma 000100,000

shares of

$11

par value common stock. During the first month,

Upper B minus WirelessBWireless

completed the following transactions:

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(Click the icon to view the transactions.)Read the requirements

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.

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.Oct.

2: Issued

25 comma 00025,000

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

$ 100 comma 000$100,000.

Date			Accounts and Explanation	Debit	Credit
Oct. 2			Building	100,000
			Common Stock$1 Par Value		25,000
			Paid-In Capital in Excess of ParCommon		75,000
			Issued common stock for building.

Oct.Oct.

6: Issued

850850

shares of preferred stock for

$ 130$130

per share.

Date			Accounts and Explanation	Debit	Credit
Oct. 6			Cash	110,500
			Preferred Stock$50 Par Value		42,500
			Paid-In Capital in Excess of ParPreferred		68,000
			Issued preferred stock for cash.

Oct.Oct.

9: Issued

16 comma 00016,000

shares of common stock for cash of

$ 64 comma 000$64,000.

Date			Accounts and Explanation	Debit	Credit
Oct. 9			Cash	64,000
			Common Stock$1 Par Value		16,000
			Paid-In Capital in Excess of ParCommon		48,000
			Issued common stock for cash.

Oct.Oct.

10: Declared a

$ 17 comma 000$17,000

cash dividend for stockholders of record on

Oct.Oct.

20. Use a separate Dividends Payable account for preferred and common stock.

Date			Accounts and Explanation	Debit	Credit
Oct. 10			Cash Dividends	17,000
			Dividends PayableCommon		14,025
			Dividends PayablePreferred		2,975
			Declared cash dividend.

Oct.Oct.

25: Paid the cash dividend.

Date			Accounts and Explanation	Debit	Credit
Oct. 25			Dividends PayableCommon	14,025
			Dividends PayablePreferred	2,975
			Cash		17,000
			Paid cash dividend.

Requirement 2. Prepare the stockholders' equity section of

Upper B minus WirelessBWireless's

balance sheet at

OctoberOctober

3131,

20182018.

Assume

Upper B minus WirelessBWireless's

net income for the month was

$ 88 comma 000$88,000.

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

B-Wireless Wireless

Balance Sheet (Partial)

October 31, 2018

Stockholders' Equity

Paid-In Capital:

Total Paid-In Capital

Total Stockholders' Equity