Question

P13-37A Journalizing stock issuance and cash dividends and preparing the stockholders' equity section of the balance sheet B-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B-Mobile to issue 70,000 shares of 5%, $100 par value cumulative preferred stock, and 110,000 shares of $2 par value common stock. During the first month, B-Mobile completed the following transactions: Oct. Issued 19,000 shares of common stock for a building with a market value of $250,000 Issued 800 shares of preferred stock for $110 per share. 6 Issued 15,000 shares of common stock for cash of $90,000. Declared a $16,000 cash dividend for stackholders of record on Oct. 20. Use a separate Dividends Payable account for preferred and common stock. 10 Paid the cash dividend. 25 Requirements 1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of B-Mobile's balance sheet at October 31, 2014. Assume B-Mobile's net income for the month was $92,000