Mobile o ssue 40 000 shares o 10%, $50 par value cumulat ve pre er ed stock and
ID: 2399631 • Letter: M
Question
Mobile o ssue 40 000 shares o 10%, $50 par value cumulat ve pre er ed stock and 170,000 shares o S2 par va C Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state o Georgia author zes C common stock. During the first month, C-Mobile completed the following transactions Click the icon to view the transactions.) 1. Record the transactions in the general journal 2. Prepare the stockholders' equity section of C - Mobile's balance sheet at October 31, 2016. Assume C-Mobile's net income for the month was $87,000 Date Accounts and Explanation Debit Credit More Info Oct. 9 Cash 78,000 26,000 52,000 Common Stock-S2 Par Value Paid-In Capital in Excess of Par-Common res of common ing witha of $160,000. 6 Issued 800 shares of preferred stock for $140 per share 9 Issued 13,000 shares of common stock for cash of $78,000 10 Dedared a $14,000 cash dividend for stockholders of record on Oct 20 issued cammon stock for cash Oct. 10: Declared a S14,000 cash dividend for stockholders of record on Oct. 20 Use a separate Dividends Payable account for preferred and common Use a separate Dividends Payable account for preferred and common stock Date Accounts and Explanation Debit Credit 25 Paid the cash dividend Oct. 10 PrintDone Choose from any list or enter any number in the input fields and then click Check AnswerExplanation / Answer
Journal entries Date Accounts title and explanations Debit $ Credit $ 2-Oct Building Account Dr. 160000 Common Stock capital 48000 Additional paid in cpaital-Common 112000 6-Oct Cash account Dr. (800*140) 112000 Preferred Stock capital (800*50) 40000 Additional paid in capital-Preferred 72000 9-Oct Cash account Ddr. 78000 Common Stock capital 26000 Additional paid in capital-Common 52000 10-Oct Dividend Account Dr. 14000 Dividend payable-Preferred (40000*10%) 4000 Dividend payable-Common 10000 25-Oct Dividend payable-Preferred 4000 Dividend payable-Common 10000 Cash account 14000 Stockholder's equity: Paid in cpaital Common 37000 shares of common stock of $ 2 each 74000 Additional paid in capital (112000+52000) 164000 Preferred: 800 Preferred stock of $ 50 each 40000 Additional paid in capital 72000 Total paid in capital 350000 Retained Earnings (87000-14000) 73000 Total Stockholder's equity 423000