D$-$Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes D $-$ Mobile to issue $120,000$ shares of $10\%,$$$150$ par value cumulative preferred stock and $140,000$ shares of $$2$ par value common stock. During the first month, D $-$ Mobile completed the following transactions:

$(1)($Click the icon to view the transactions.$)$

Requirements

Record the transactions in the general journal.

Prepare the stockholders' equity section of $D-$Mobile's balance sheet at October $31,2016.$ Assume D$-$Mobile's net income for the month was $$87,000.$

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. $2.$ Issued $17,000$ shares of common stock for a building with a market value of $$260,000.$

Date

Accounts and Explanation

More info

Oct. $2$ Issued $17,000$ shares of common stock for a building with a market value of $$260,000$

$6$ Issued $850$ shares of preferred stock for $$160$ per share

$9$ Issued $15,000$ shares of common stock for cash of $$60,000.$

$10$ Declared a $$17,000$ 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.