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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.

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.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...
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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

  1. Record the transactions by preparing journal entries in the general journal.
  2. 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.
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