Question

B- Mobile Wireless needed additional capital to expand, so bisuness 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:

Requirement 1. Record the transactions in the general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Oct. 2: Issued 23,000 shares of common stock for a building with a market value of $140,000. Date Debit Credit Oct. 2 140,000 Accounts and Explanation Building Common Stock-$4 Par Value Paid-In Capital in Excess of Par--Commor 92,000 48,000 Issued common stock for building.

Answer 1

2)stockholder equity:
Paid in Capital
Preferred Stock-9%, $50 par Value	$35,000.00
Paid in Capital in Excess of Par- Preferred	$35,000.00
Common Stock- $4 Par Value [92000+48000]	$140,000.00
Paid in Capital in Excess of Par- Common (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