Journalizing corporate transactions 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 preferred stock, and 110,000 shares of no par common stock. B Mobile completed the following transactions:
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Oct 2 |
Issued 19,000 shares of common stock for equipment with a market value of $110,000. |
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6 |
Issued 800 shares of preferred stock to acquire a patent with a market value of $80,000. |
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9 |
Issued 15,000 shares of common stock for cash of $90,000. |
Requirements
1. Record the transactions in the general journal.
2. Prepare the stockholders’ equity section of the B Mobile balance sheet at October 31. The ending balance of Retained earnings is $92,000.