Requirement 2. Prepare the stockholders' equity section of C −Mobile's balance sheet at October 31, 2018. (Assume C−Mobile's Net income for the month was $96,000.)
Requirement 2. Prepare the stockholders' equity section of C −Mobile's balance sheet at October 31, 2018. (Assume C−Mobile's Net income for the month was $96,000.)
Requirement 2. Prepare the stockholders' equity section of C −Mobile's balance sheet at October 31, 2018. (Assume C−Mobile's Net income for the month was $96,000.)
Upper C minus Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes Upper C minus Mobile to issue 110,000 shares of 6 %, $50 par value cumulative preferred stock, and 170,000 shares of $2 par value common stock. During the first month,
Req 1:
Upper C minus Mobile completed the following transactions: ( Req 1 was completed.)
More Data:
Oct 2-
Issued 23,000 shares of common stock for a building with a market value of $100,000.
Oct 6.-
Issued 700 shares of preferred stock for $160 per share.
Oct 9-
Issued 17,000 shares of common stock for cash of $102,000.
Oct 10-
Declared a $12,000 cash dividend for stockholders of record on Oct. 20. Use a separate
Oct 25-
Paid the cash dividend.
Assume C − Mobile's net income for the month was $96,000.
Requirement 2. Prepare the stockholders' equity section of C −Mobile's balance sheet at October 31, 2018.
(Assume C−Mobile's Net income for the month was $96,000.)
(Assume all temporary accounts have been closed prior to preparing thestockholders' equity section of the balance sheet.)
P.S. I have completed all the work but seem to have forgotten how to finded the " Shares Authorized"
Transcribed Image Text:### Recording Transactions in the General Journal
This guide explains how to record various transactions in the general journal. Each entry should list debits first, followed by credits, and include an explanation.
#### Transaction 1: Issued Common Stock for a Building
**Date:** Oct. 2
| **Date** | **Accounts and Explanation** | **Debit** | **Credit** |
|----------|--------------------------------------------------- |-----------|------------|
| Oct. 2 | Building | 100,000 | |
| | Common Stock—$2 Par Value | | 46,000 |
| | Paid-In Capital in Excess of Par—Common | | 54,000 |
| | _Issued common stock for building._ | | |
#### Transaction 2: Issued Preferred Stock for Cash
**Date:** Oct. 6
| **Date** | **Accounts and Explanation** | **Debit** | **Credit** |
|----------|---------------------------------------------------- |-----------|------------|
| Oct. 6 | Cash | 112,000 | |
| | Preferred Stock—$50 Par Value | | 35,000 |
| | Paid-In Capital in Excess of Par—Preferred | | 77,000 |
| | _Issued preferred stock for cash._ | | |
#### Transaction 3: Issued Common Stock for Cash
**Date:** Oct. 9
| **Date** | **Accounts and Explanation** | **Debit** | **Credit** |
|----------|---------------------------------------------------- |-----------|------------|
| Oct. 9 | Cash | 102,000 | |
| | Common Stock—$2 Par Value | | 34,000 |
| | Paid-In Capital in Excess of Par—Common | | 68,000 |
| | _Issued common stock for cash._ | | |
#### Transaction 4: Declared Cash Dividend
**Date:** Oct. 10
| **Date** | **Accounts and Explanation** | **Debit** | **Credit** |
|----------|---------------------------------------------------- |-----------|------------|
| Oct. 10 | Cash Dividends | 12,000 | |
| | Dividends Payable—Preferred |
Transcribed Image Text:**Requirement 2.** Prepare the stockholders' equity section of C - Mobile's balance sheet at October 31, 2018. **Assume C – Mobile's net income for the month was $96,000. (Assume all temporary accounts have been closed prior to preparing the stockholders' equity section of the balance sheet.)**
**C-Mobile Wireless**
**Balance Sheet (Partial)**
**October 31, 2018**
**Stockholders' Equity**
- **Paid-In Capital:**
- **Preferred Stock—6%, $50 Par Value;** ___ shares authorized, **700 shares issued and outstanding** $ 35,000
- **Paid-In Capital in Excess of Par—Preferred** $ 77,000
- **Common Stock—$2 Par Value;** ___ shares authorized, **40,000 shares issued and outstanding** $ 80,000
- **Paid-In Capital in Excess of Par—Common** $ 122,000
- **Total Paid-In Capital** $ 314,000
- **Retained Earnings** $ 84,000
- **Total Stockholders' Equity** $ 398,000
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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