Journalizing stock issuance and cash dividends and preparing the stockholders’ equity section of the balance sheetD-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 %, $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:RequirementsRecord the transactions 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. Oct. 2 Issued 19,000 shares of common stock for a building with a market valueof $240,000.6 Issued 600 shares of preferred stock for $140 per share.9 Issued 11,000 shares of common stock for cash of $55,000.10 Declared a $19,000 cash dividend for stockholders of record on Oct. 20. Usea separate Dividends Payable 3ccount for preferred and common stock.25Paid the cash dividend.

Journal entry refers to the recording made by the business in the books of accounts, of all the…

Answered: Oct. 2 Issued 19,000 shares of common…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Journalizing stock issuance and cash dividends and preparing the stockholders’ equity section of the balance sheetD-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 %, $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:

Requirements

Record the transactions 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.

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 of $55,000.
10 Declared a $19,000 cash dividend for stockholders of record on Oct. 20. Use
a separate Dividends Payable 3ccount for preferred and common stock.
25
Paid the cash dividend.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions