Question

P13-41A (similar to) C-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authors C-Mobile to 80,000 shares of 8,550 par value cumulative preferred stock and 100,000 shares of $2 par value common stock. During the first month, C-Mobile completed the following transactions Click the loon to view the transactions) Read the requirements Requirement 1. Record the transactions in the general journal (Record debits first, then credits Select the explanation on the sine of the journal entry table) Oct 2 d 23,000 shares of common stock for a building with a market value of $210,000 Date Accounts and Explanation Do. 2

Answer 1

Journal Entry- C- Mobile Wireless- F
Date	Account Tittle	Debit	Credit
2-Oct	Building	$210,000.00
	Common Stock (23000*2)		$46,000.00
	Paid in Capital in Excess of Par		$164,000.00
	TO Record Common Stock issued in lieu of Building
6-Oct	Cash	$32,500.00
	Preferred Stock ( 650*50)		$32,500.00
	Paid in Capital in Excess of Par- Preferred Stock		$32,500.00
	TO Record issuance of preferred Stock
9-Oct	Cash	$102,000.00
	Common Stock ( 17000*2)		$34,000.00
	Paid in Capital in Excess of Par		$68,000.00
	TO Record Common Stock issued in cash
10-Oct	Retained Earning	$11,000.00
	Dividend Payable - Common Stock (bal)		$8,400.00
	Dividend Payable - Preferred Stock (32500*8%)		$2,600.00
	To Record Decleration of Dividend
25-Oct	Dividend Payable - Common Stock (bal)	$8,400.00
	Dividend Payable - Preferred Stock (32500*8%)	$2,600.00
	Cash		$11,000.00
	To Record Dividend paid

Stock holder Equity Section
Paid in Capital
Common Stock	$46,000.00
Preferred Stock	$32,500.00
Paid in Capital n Excess of par- Common Stock	$232,000.00
Paid in Capital n Excess of par-Preferred stock	$32,500.00
Total Paid in Capital		$343,000.00
Retained Earning (89000-11000)		$78,000.00
Total Stockholder Equity		$421,000.00