Question

B-Wireless Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B-Wireless to issue 60,000 shares of 6%, $100 par value cumulative preferred stock and 150,000 shares of $4 par value common stock. During the first month, B-Wireless completed the following transactions: (Click the icon 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 last line of the journal entry table.) Oct 2: Issued 18,000 shares of common stock for a building with a market value of $260,000 Date Accounts and Explanation Debit Credit Oct. 2 Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Answer :-

Total par value = 18000×4 = 72000

Paid in capital = 260000 - 72000 = 188000

Date	accounts and explanation	debit	credit
Oct 2	Building	260000
	Common stock $4 par value		72000
	Paid in capital in excess of par -common		188000
	(Issued common stock for building)