B-Cell Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B- Cell to issue 60,000 shares of 7%, $50 par value cumulative preferred stock and 100,000 shares of $1 par value common stock. During the first month, B- Cell completed the following transactions: 1 (Click the icon to view the transactions.) Read the requirements 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.) More Info - X O Requirements Record the transactions in the general journal. 2. Prepare the stockholders' equity section of B- Cell's balance sheet at October 31, 2018. Assume B- Cells net income for the month was $89.000. (Assume all temporary accounts have been closed prior to preparing the stockholders' equity section of the balance sheet.) Oct. 2 Issued 21,000 shares of common stock for a building with a market value of $210,000. 1. Oct. 6 Issued 950 shares of preferred stock for $90 per share. Oct. 9 Issued 14,000 shares of common stock for cash of $84,000. Declared a $12,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. Oct. 10 Oct. 25 Paid the cash dividend Print Done Assume B- Cell's net income for the month was $89,000.
B-Cell Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B- Cell to issue 60,000 shares of 7%, $50 par value cumulative preferred stock and 100,000 shares of $1 par value common stock. During the first month, B- Cell completed the following transactions: 1 (Click the icon to view the transactions.) Read the requirements 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.) More Info - X O Requirements Record the transactions in the general journal. 2. Prepare the stockholders' equity section of B- Cell's balance sheet at October 31, 2018. Assume B- Cells net income for the month was $89.000. (Assume all temporary accounts have been closed prior to preparing the stockholders' equity section of the balance sheet.) Oct. 2 Issued 21,000 shares of common stock for a building with a market value of $210,000. 1. Oct. 6 Issued 950 shares of preferred stock for $90 per share. Oct. 9 Issued 14,000 shares of common stock for cash of $84,000. Declared a $12,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. Oct. 10 Oct. 25 Paid the cash dividend Print Done Assume B- Cell's net income for the month was $89,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**B – Cell Wireless Transactions and Requirements**
**Context:**
B – Cell Wireless needed additional capital to expand its business, leading to incorporation. The charter from the state of Georgia authorizes B – Cell to issue 60,000 shares of 7%, $50 par value cumulative preferred stock and 100,000 shares of $1 par value common stock. During the first month, B – Cell completed the following transactions:
**Transactions:**
- **Oct. 2:** Issued 21,000 shares of common stock for a building valued at $210,000.
- **Oct. 6:** Issued 950 shares of preferred stock at $90 per share.
- **Oct. 9:** Issued 14,000 shares of common stock for cash totaling $84,000.
- **Oct. 10:** Declared a cash dividend of $12,000 for stockholders of record on Oct. 20. A separate Dividends Payable account was used for preferred and common stock.
- **Oct. 25:** Paid the cash dividend.
Assume B – Cell’s net income for the month was $89,000.
**Requirements:**
1. Record the transactions in the general journal. Ensure to record debits first, then credits. An explanation should be provided on the last line of each journal entry table.
2. Prepare the stockholders’ equity section of B – Cell’s balance sheet as of October 31, 2018. Assume the net income for the month was $89,000 and all temporary accounts have been closed prior to preparing the stockholders’ equity section.
The display includes two information boxes:
- **More Info Box** summarizes the specific transactions, their dates, and relevant financial figures.
- **Requirements Box** outlines the necessary accounting tasks to be completed, focusing on journal entry recording and stockholders’ equity preparation.
These tasks provide practical application scenarios for accounting practices, including forming journal entries and understanding equity structures in a balance sheet.
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