Cell Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes Cell to issue 40,000 shares of 10%, $ 50 par value cumulative preferred stock, and 100,000 shares of $ 1 par value common stock. During the first month, Cell completed the following transactions:

Oct. 2 Issued 21,000 shares of common stock for a building with a market value of $ 240,000.

6 Issued 600 shares of preferred stock for $ 80 per share.

9 Issued 11,000 shares of common stock for cash of $ 20,000.

10 Declared a $ 12,000 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 Cell’s balance sheet at October 31, 2014. Assume Cell’s net income for the month was $ 82,000.