D-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes D-Mobile to issue 50,000 shares of 8%, $50 par value cumulative preferred stock and 160,000 shares of $4 par value common stock. During the first month, D-Mobile completed the following transactions:Oct. 2Issued 19,000 shares of common stock for a building with a market value of $240,000. 6Issued 600 shares of preferred stock for $140 per share. 9Issued 11,000 shares of common stock for cash for $5 per share 10Declared a $19,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. 25Paid the cash dividend.Purchased 600 shares of the company’s common stock , paying cash of $6 per share.RequirementsRecord the transactions by preparing journal entries in the general journal.Prepare the stockholders’ equity section of D-Mobile’s balance sheet at October 31, 2018. Assume D-Mobile’s net income for the month was $94,000.

1) Journal entries: Date Account journal Debit $ Credit $ Oct 2 building 240,000…

Answered: D-Mobile Wireless needed additional…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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D-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes D-Mobile to issue 50,000 shares of 8%, $50 par value cumulative preferred stock and 160,000 shares of $4 par value common stock. During the first month, D-Mobile completed the following transactions:

Oct. 2	Issued 19,000 shares of common stock for a building with a market value of $240,000.
6	Issued 600 shares of preferred stock for $140 per share.
9	Issued 11,000 shares of common stock for cash for $5 per share
10	Declared a $19,000 cash dividend for stockholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock.
25	Paid the cash dividend. Purchased 600 shares of the company’s common stock , paying cash of $6 per share.

Requirements

Record the transactions by preparing journal entries in the general journal.
Prepare the stockholders’ equity section of D-Mobile’s balance sheet at October 31, 2018. Assume D-Mobile’s net income for the month was $94,000.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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