Question

A- Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes A- Mobile to issue 70,000 shares of 8%, $50 per value cumulative preferred stock and 180,000 shares of $3 par value common stock. During the first month, A- Mobile completed the folowing transactions:

Requirements:

1, Record the transactions in the general journal.

2. Prepare the stockholders' equity section of A- Mobile's balance sheet at October 31, 2016. Assume A- Mobile's net income for the month was $92,000.

Oct

2

Issued 19,000 shares of common stock for a building with a market value of $140,000

 

6

Issued 700 shares of preferred stock for $80 per share.

 

9

Issued 17,000 shares of common stock for cash of $102,000

 

10

Declared a $17,000 cash dividend for stockholders of record on Oct. 20. Use a separete Dividends Payable account for preferred and common stock.

 

25

Paid the cash dividend.