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

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

A — Cell Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes A — Cell to issue 40,000 shares of 8%, $50-par preferred stock and 130,000 shares of no-par common stock. A — Cell completed the following transactions:

Requirements

1. Record the transactions in the general journal.

2. Prepare the stockholders’ equity section of the A — Cell Wireless balance sheet at December 31. The ending balance of Retained Earnings is $92,000.