Problem:
Journalizing corporate transactions and preparing the stockholders' equitysection of the balance sheet 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 sharesof 10%, $150-par preferred stock, and 140,000 shares of no-par common stock.C-Mobile completed the following transactions:
December
2 Issued 21,000 shares of common stock for equipment with a market valueof $140,000.
6 Issued 500 shares of preferred stock to acquire a patent with a marketvalue of $75,000.
9 Issued 10,000 shares of common stock for cash of $60,000
Requirements:
Question 1: Record the transactions in the general journal.
Question 2: Prepare the stockholders' equity section of the C-Mobile balance sheet at December 31. The ending balance of Retained earnings is $90,000
Note: Please provide through step by step calculations.