Question

B-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B-Mobile to issue 70,000 shares of 5%, $ 100 par value cumulative preferred stock, and 110,000 shares of $ 2 par value common stock. During the first month, B-Mobile completed the following transactions:
Oct. 2 Issued 19,000 shares of common stock for a building with a market value of $ 250,000.
6 Issued 800 shares of preferred stock for $ 110 per share.
9 Issued 15,000 shares of common stock for cash of $ 90,000.
10 Declared a $ 16,000 cash dividend for stockholders of record on
Oct. 20. Use a separate Dividends Payable account for preferred and common stock.
25 Paid the cash dividend.

Requirements
1. Record the transactions in the general journal.
2. Prepare the stockholders’ equity section of B-Mobile’s balance sheet at October 31, 2014. Assume B-Mobile’s net income for the month was $ 92,000.



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  • CreatedJanuary 16, 2015
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