Journalizing corporate transactions and preparing the stockholders' equitysection of the balance sheet [20-25 min]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 sharesof 5%, $100-par preferred stock, and 110,000 shares of no-par common stock.B-Mobile completed the following transactions:
October
2 Issued 19,000 shares of common stock for equipment with a market valueof $110,000.
6 Issued 800 shares of preferred stock to acquire a patent with a marketvalue of $80,000.
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 atOctober 31. The ending balance of Retained earnings is $92,000