Question

Homework: Ch 13 Homework Sav Score: 0.64 of 7 pts 1 of 2 complete) HW Score: 51.3%, 7.7 of 15 & P13-37A (similar to) Question Help 50 r value cu mulative A Mobile wireless needed additional capdal to expand, s the business inco orated. The Charter from the state of Georgia authorizes A preferred stock and 150,000 shares of $3 par value common stock During the first month, A-Mobile completed the following transactions Mobile to issue 90 00 shares of 9%. (Click the icon to view the transactions) Requirements 1. Record the transactions in the general jounal. 2. Prepare the stockholders' equity section of A- Mobile's balance sheet at October 31, 2016, Assume A- Mobile's net income for the month was $94,000 Oct. 6: Issued 850 shares of preferred stock for $130 per share Date Accounts and Explanation DebitCredit More Info Cash Preferred Stock- $50 Par Value Paid-In Capital in Excess of Par- Preferred Oct 6 oct 2 Issued 18,000 shares of common stock for a building with a market value of $140,000 6 Issued 850 shares of preferred stock for $130 per share 9 Issued 14,000 shares of common stock for cash of $56,000 10 Declared a $13,000 cash dividend tor stockholders of record on Oct 20 Issued preferred stock for cash Use a separate Dividends Payable account for preferred and common stock elds and then click Check Answer Choose from any list or enter any number in the input f 25 Paid the cash dividend parts remaining Clear All

Answer 1

Oct 2:
Building(db) 140000
Common stock-par value(cR) 18000*3=54000
Paid in capital in excess of par-common stock(cr) 140000-54000=86000

Oct 6:
Cash(db) 850*130=110500
preferred stock-par value(cR) 850*50=42500
Paid in capital in excess of par-preferred stock(cr) 110500-42500=68000

Oct 9:
Cash(db) 56000
Common stock-par value(cr) 14000*3=42000
Paid in capital in excess of par-common stock(cr) 56000-42000=14000

Oct 10:
Cash dividend(db) 13000
Dividend payable:preferred(cr) (850*50*9%)=3825
Dividend payable:common(cr) 13000-3825=9175

Oct 25:
Dividend payable:preferred(db)3825
Dividend payable:common(db)9175
Cash(cr)13000

2) Stockholder equity section:

Paid in capital:
Cummulative preferre stock- 50 par value 9%=42500
Paid in capital in excess of par-preferred stock=68000
common stock, 3 par value=54000+42000=96000
Paid in capital in excess of par-common stock=86000+14000=100000
Total paid in capital=42500+68000+96000+100000=306500
Retained earnings= net income-dividend=94000-13000=81000
Total stockholder equity=306500+81000=387500