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Part 1

BWireless

Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes

BWireless

to issue

90,000

shares of

5%,

$50

par value cumulative preferred stock and

180,000

shares of

$3

par value common stock. During the first month,

BWireless

completed the following transactions:

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Oct. 2	Issued 24,000 shares of common stock for a building with a market value of $160,000.
Oct. 6	Issued 700 shares of preferred stock for $160 per share.
Oct. 9	Issued 14,000 shares of common stock for cash of $56,000.
Oct. 10	Declared a $15,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock.
Oct. 25	Paid the cash dividend.

Assume

BWireless's

net income for the month was

$90,000.

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

24,000

shares of common stock for a building with a market value of

$160,000.

Date

Accounts and Explanation

Debit

Credit

Oct. 2

Part 2

Oct.

6: Issued

700

shares of preferred stock for

$160

per share.

Date			Accounts and Explanation	Debit	Credit
Oct. 6

Part 3

Oct.

9: Issued

14,000

shares of common stock for cash of

$56,000.

Date			Accounts and Explanation	Debit	Credit
Oct. 9

Part 4

Oct.

10: Declared a

$15,000

cash dividend for stockholders of record on

Oct.

20. Use a separate Dividends Payable account for preferred and common stock.

Date			Accounts and Explanation	Debit	Credit
Oct. 10

Part 5

Oct.

25: Paid the cash dividend.

Date			Accounts and Explanation	Debit	Credit
Oct. 25

Part 6

Requirement 2. Prepare the stockholders' equity section of

BWireless's

balance sheet at

October

31,

2018.

Assume

BWireless's

net income for the month was

$90,000.

(Assume all temporary accounts have been closed prior to preparing the stockholders' equity section of the balance sheet.)

B-Wireless Wireless

Balance Sheet (Partial)

October 31, 2018

Stockholders' Equity
	Paid-In Capital:
	Total Paid-In Capital
	Total Stockholders' Equity

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