%) P13-37A (similar to) Question Help B-Cell Wireless needed additional capital

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%) P13-37A (similar to) Question Help B-Cell Wireless needed additional capital to expand so the business incorporated. The charter rom the state of Georgia author zes B-Cell to issue 90,000 shares o 7%, S50 par value cumulat ve preferred stock and 100,000 shares of $1 par value common stock During the first month, B-Cell completed the following transactions Click the icon to view the transactions.) Requirements 1 Record the transactions in the general journal 2. Prepare the stockholders' equity section of B- Cels balance sheet at October 31, 2016. Assume B- Cell's net income for the month was $93,000. Requirement 2. Prepare the stockholders' equity section of B - Celrs balance sheet at October 31, 2016. Assume B - Cell's net income for the month was $93,000. B-Cell Wireless Balance Sheet (Partial) October 31, 2016 Stockholders' Equity i More Info Paid-In Capital common of $160,000 6 Issued 650 shares of preferred stock for $150 per share 9 Issued 14,000 shares of common stock for cash of $56,000. 10 Declared a $16,000 cash dividend for stockholders of record on Oct 20. Use a separate Dividends Payable account for preferred and common stock 25 Paid the cash dividend Total Paid-In Capital Print Done Choose from any list or enter any number in the input fields and then click Check Answer

Explanation / Answer

Journal entries Date Accounts title and explanations Debit $ Credit $ 2-Oct Building Account Dr. 160000     Common Stock capital 17000     Additional paid in cpaital-Common 143000 6-Oct Cash account Dr. (650*150) 97500      Preferred Stock capital (650*50) 32500      Additional paid in capital-Preferred 65000 9-Oct Cash account Ddr. 56000     Common Stock capital 14000      Additional paid in capital-Common 42000 10-Oct Dividend Account Dr. 16000     Dividend payable-Preferred (32500*7%) 2275     Dividend payable-Common 13725 25-Oct Dividend payable-Preferred 2275 Dividend payable-Common 13725      Cash account 16000 Stockholder's equity: Paid in cpaital Common 31000 shares of common stock of $ 1 each 31000 Additional paid in capital (143000+42000) 185000 Preferred: 650 Preferred stock of $ 50 each 32500 Additional paid in capital    65000 Total paid in capital 313500 Retained Earnings (93000-16000) 77000 Total Stockholder's equity 390500

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