Background:

C-Cell Wireless needed additional capital to expand, so the business was incorporated. The charter from the state of Georgia authorizes C-Cell to issue 50,000 shares of 7%, $50 par value cumulative preferred stock, and 120,000 shares of $2 par value common stock. During the first month, C-Cell completed the following transactions. Assume C-Cells net income for the month was $96,000.

Assignment:

This question has 3 requirements. Scroll down to review the requirements and ensure you complete all requirements before submitting your work for grading. Requirements:

The accounts used by C-Cell Wireless are provided in the Chart of Accounts (click on Chart of Accounts to view). The accounts have already been opened in the General Ledger (click on General Ledger to view).

1. Prepare journal entries to record the transactions of C-Cell Wireless and post the entries to the General Ledger. (Explanations are not required.)
2. Review each of the accounts in the General Ledger to see the results of posting the journal entries, including the changes in each account.
3. Review the stockholders equity section of C-Cells balance sheet at October 31, 2016.

10/02/2016

Issued 22,000 shares of common stock for a building with a market value of $120,000.

10/06/2016

Issued 900 shares of preferred stock for $70 per share.

10/09/2016

Issued 12,000 shares of common stock for cash of $60,000.

10/10/2016

Declared a $16,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock.

10/25/2016

Paid the cash dividend.

\begin{tabular}{l} Account \# \\ \begin{tabular}{|c|l|l|} \hline \multicolumn{1}{|c|}{ Description } & \multicolumn{1}{c|}{ Type } \\ \hline 10100 & Cash & Current Asset \\ \hline 11150 & Buildings & Property, Plant, and Equipment \\ \hline 20650 & Dividends Payable - Preferred & Current Liability \\ \hline 20700 & Dividends Payable - Common & Current Liability \\ \hline 30400 & Preferred Stock - \$50 Par Value & Stockholders' Equity \\ \hline 30450 & Paid-In Capital in Excess of Par - Preferred & Stockholders' Equity \\ \hline 30500 & Commolders' Equity \\ \hline 30550 & Paid-In Capital - \$2 Par Value & Stockholders' Equity \\ \hline 30650 & Cash Dividends & Stockholders' Equity \\ \hline 30850 & Dividends - Common - Common & Dividends - Common \\ \hline 30900 & Dividends - Preferred & Dividends - Preferred \\ \hline 60150 & Dividend Revenue & Other Revenue \\ \hline \end{tabular} \\ \hline \end{tabular} \begin{tabular}{l} Account \# \\ \begin{tabular}{|c|l|l|} \hline \multicolumn{1}{|c|}{ Description } & \multicolumn{1}{c|}{ Type } \\ \hline 10100 & Cash & Current Asset \\ \hline 11150 & Buildings & Property, Plant, and Equipment \\ \hline 20650 & Dividends Payable - Preferred & Current Liability \\ \hline 20700 & Dividends Payable - Common & Current Liability \\ \hline 30400 & Preferred Stock - \$50 Par Value & Stockholders' Equity \\ \hline 30450 & Paid-In Capital in Excess of Par - Preferred & Stockholders' Equity \\ \hline 30500 & Commolders' Equity \\ \hline 30550 & Paid-In Capital - \$2 Par Value & Stockholders' Equity \\ \hline 30650 & Cash Dividends & Stockholders' Equity \\ \hline 30850 & Dividends - Common - Common & Dividends - Common \\ \hline 30900 & Dividends - Preferred & Dividends - Preferred \\ \hline 60150 & Dividend Revenue & Other Revenue \\ \hline \end{tabular} \\ \hline \end{tabular}