Central Wireless, Inc. Needed additional capital to expand, so the business incorporated. The charter from the state of New Mexico authorizes Central Wireless, Inc. to issue 130,000 shares of 8%, $70 par value cumulative preferred stock and 210,000 shares of $4 par value common stock. During the first month, Central Wireless, Inc. completed the following transactions: View the transactions. Assume Central Wireless, Inc.'s net income for the month was $95,000.

 Prepare a statement of stockholders' equity for Central Wireless, Inc. for the month ended October 31, 2025.

The opening balances, which are all 0 for the first month of operations, have been entered for you. (Complete only the necessary input fields. Do not enter any 0 balances. Enter a decrease in stockholders' equity with a minus sign or parentheses.)

Transcribed Image Text:

Transactions Oct. 2 Oct. 6 Oct. 9 Oct. 10 Oct. 25 Issued 21,000 shares of common stock for a building with a fair value of $280,000. Issued 400 shares of preferred stock for $140 per share. Issued 18,000 shares of common stock for cash of $90,000. Declared a $17,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. Paid the cash dividend. Transactions Oct. 2 Oct. 6 Oct. 9 Oct. 10 Oct. 25 Issued 21,000 shares of common stock for a building with a fair value of $280,000. Issued 400 shares of preferred stock for $140 per share. Issued 18,000 shares of common stock for cash of $90,000. Declared a $17,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. Paid the cash dividend.

Answer rating: 100% (QA)

Prepare the statement of stockholders equity for the month ended O... View the full answer