(L.OBJ. 3) Journalizing corporate transactions and preparing the stockholders’ equity se...

(L.OBJ. 3) Journalizing corporate transactions and preparing the stockholders’ equity section of the balance sheet [20—25 min]

C-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes C-Mobile to issue 60,000 shares of 10%, $150-par preferred stock, and 140,000 shares of no-par common stock. C-Mobile completed the following transactions:

Requirements

1. Record the transactions in the general journal.

2. Prepare the stockholders’ equity section of the C-Mobile Wireless balance sheet at December 31. The ending balance of Retained Earnings is $90,000.