Question

B- Mobile Wireless needed additional captital to expand, so the business incorporated. The charter from state of Georgia authorized B- Mobile to issue $80,000 shares of 9%, $50 par value cumulative preferred stock and 170,000 shares of $4 par value common stock. During the first month, B- Mobile completed the following transactions:

i More Info Oct. 2 Issued 23,000 shares of common stock for a building with a market value of $140,000. 6 Issued 700 shares of preferred stock for $100 per share. 9 Issued 12,000 shares of common stock for cash of $60,000. 10 Declared a $21,000 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. Print Done

Answer 1

Journal Entry-B Mobile Wireless
Date	Accoutn Tittle	Debit	Credit
2-Oct	Building	$140,000.00
	Common Stock [23000*4]		$92,000.00
	Paid In Capital Inexcess Of Par- Common Stock (BF)		$48,000.00
6-Oct	Cash [700*100]	$70,000.00
	Preferred Stock [700*50]		$35,000.00
	Paid In Capital Inexcess Of Par-Preferred Stock (BF)		$35,000.00
9-Oct	Cash	$60,000.00
	Common Stock [12000*4]		$48,000.00
	Paid In Capital Inexcess Of Par- Common Stock (BF)		$12,000.00
10-Oct	Retained Earning	$21,000.00
	Preferred Dividend Payable [35000*9%]		$3,150.00
	Common Stock Dividend Payable (Bal)		$17,850.00
25-Oct	Preferred Dividend Payable	$3,150.00
	Common Stock Dividend Payable	$17,850.00
	Cash		$21,000.00

2)stockholder equity:
Preferred Stock	$35,000.00
Paid in Capital in Excess of Par- Preferred Stock	$35,000.00
Common Stock [92000+48000]	$140,000.00
Paid in Capital in Excess of Par- Common Stock (48000+12000)	$60,000.00
Total Paid In Capital	$270,000.00
Retained Earning [93000-21000]	$72,000.00
Total Stockholders Equity	$342,000.00