. Record the transactions in the general journal. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Question

Oct. ​2: Issued 23000 shares of common stock for a building with a market value of $ 270000.
Oct ​6: Issued 800 shares of preferred stock for $ 150 per share.

Answer 1

To record the transactions in the general journal, we recognize the relevant debits and credits and provide an explanation for each entry.

General Journal

| Date | Account Title | Debit | Credit | |------------|------------------------------|--------------|---------------| | Oct. 2 | Building | $270,000 | | | | Common Stock | | $23,000 | | | Additional Paid-In Capital | | $247,000 | | | To record the issuance of 23,000 shares of common stock for a building | | | | | | | | | Oct. 6 | Cash | $120,000 | | | | Preferred Stock | | $80,000 | | | To record the issuance of 800 shares of preferred stock at $150 per share | | |

Explanations

1. For the transaction on October 2:

   • The company issued 23,000 shares of common stock in exchange for a building valued at $270,000. The common stock account is credited for the par value of the stock issued, while the remaining amount is credited to additional paid-in capital.

2. For the transaction on October 6:

   • The company issued 800 shares of preferred stock at a price of $150 per share. The cash account is debited for the total cash received, and the preferred stock account is credited for the par value of the shares issued.

Note: The amounts used in the entry for Common Stock and Additional Paid-In Capital are based on assumptions since the par value or stated value was not provided. Ensure you use the actual figures relevant to your situation.

Answer 2

Oct. ​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.

Journalize

Answer 3

To record the declaration of cash dividends, we will need to make appropriate entries in the general journal for the dividends payable accounts for both the preferred and common stockholders.

General Journal

| Date | Account Title | Debit | Credit | |------------|-----------------------------------|--------------|---------------| | Oct. 10 | Dividends Declared (Common) | $8,000 | | | | Dividends Payable (Common) | | $8,000 | | | Dividends Declared (Preferred) | $8,000 | | | | Dividends Payable (Preferred) | | $8,000 | | | To record the declaration of cash dividends for common and preferred stockholders | | |

Explanations

1. Amount Allocation:

   • Assuming that the total cash dividend of $16,000 is equally divided between common and preferred stockholders, each would receive $8,000.
   • If there is a different allocation based on the number of shares or different dividend rates, adjust the amounts accordingly.

2. Account Titles:

   • The "Dividends Declared" account is debited to reflect the expense recognized as dividends declared.
   • The "Dividends Payable" accounts are credited to recognize the liability owed to the stockholders for the declared dividends.

This journal entry appropriately captures the declaration of the cash dividends for the respective stockholders. Please adjust the amounts and account titles according to your company's specific situation and policies if necessary.

Answer 4

Prepare the​ stockholders' equity section of Upper B minus Wireless​'s balance sheet at October 31​, 2024. Assume Upper B minus Wireless​'s net income for the month was $ 95000. ​(Assume all temporary accounts have been closed prior to preparing the​ stockholders' equity section of the balance​ sheet.)

Answer 5

To prepare the stockholders' equity section of Upper B minus Wireless’s balance sheet as of October 31, 2024, we will include the following components:

1. Common Stock
2. Preferred Stock
3. Additional Paid-In Capital (if applicable)
4. Retained Earnings (including the net income for the month)

Assuming we have the following data (you can adjust these figures based on actual amounts):

• Common Stock: $230,000 (with par value and number of shares issued, etc.)
• Preferred Stock: $80,000 (with par value and number of shares issued)
• Additional Paid-In Capital: $247,000 (if applicable)
• Retained Earnings (beginning balance): Let's assume $100,000 (before this month's net income)

Stockholders' Equity Section of the Balance Sheet

Upper B minus Wireless
Balance Sheet
Stockholders' Equity Section
October 31, 2024

| Account Title | Amount | |---------------------------------------|------------| | Preferred Stock | $80,000 | | Common Stock | $230,000 | | Additional Paid-In Capital | $247,000 | | | | | Total Paid-In Capital | $557,000 | | | | | Retained Earnings | | | Beginning Retained Earnings | $100,000 | | Add: Net Income for October | $95,000 | | | | | Total Retained Earnings | $195,000 | | | | | Total Stockholders' Equity | $752,000 |

Explanation

1. Total Paid-In Capital is the sum of Preferred Stock, Common Stock, and Additional Paid-In Capital.
2. Retained Earnings is calculated by taking the beginning retained earnings and adding the net income for the month.
3. Total Stockholders' Equity is the sum of Total Paid-In Capital and Total Retained Earnings.

Note

• Ensure the values for Common Stock, Preferred Stock, Additional Paid-In Capital, and beginning Retained Earnings correspond with your actual company records. Adjust these figures accordingly.
• The structure assumes that all above-mentioned temporary accounts were closed prior to this section being prepared.