Requirements :

1. Record the transactions as general journal entries.

 2. Prepare the shareholders' equity section of the B-Mobile balance sheet  as at 31 October. The ending balance of Retained earnings is $46 000.

Transcribed Image Text:

B-Mobile Wireless needed additional capital to expand, so the business incorporated. B-Mobile Ltd then completed the following transactions: Oct 2 Issued 19 000 ordinary shares for equipment with a market value of $110 000. 9 Received applications for 15 000 ordinary shares, at a total issue price of $6 per share, each accompanied by an initial payment of 25% of the issue price, and allotted the 15 000 shares to these applicants. Issued 8.000 preference shares to acquire a patent with a market value of $80 000. Made a call on the partly paid ordinary shares of a further $3 per share. The call was paid in full. 12 28 B-Mobile Wireless needed additional capital to expand, so the business incorporated. B-Mobile Ltd then completed the following transactions: Oct 2 Issued 19 000 ordinary shares for equipment with a market value of $110 000. 9 Received applications for 15 000 ordinary shares, at a total issue price of $6 per share, each accompanied by an initial payment of 25% of the issue price, and allotted the 15 000 shares to these applicants. Issued 8.000 preference shares to acquire a patent with a market value of $80 000. Made a call on the partly paid ordinary shares of a further $3 per share. The call was paid in full. 12 28

Answer rating: 100% (QA)

Here are the journal entries Transaction 1 Oct 2 Issued 19000 ordinary shares for equipment with a m... View the full answer