Problem:

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 shares of 10%, $150-par preferred stock, and 140,000 shares of no-par common stock. C-Mobile completed the following transactions

• Issued 21,000 shares of common stock for equipment with the market vaue of $140,000
• Issued 500 shares of preferred stock to require a patent with a market value of $75,000
• Issued 10,000 shares of common stock for cash of $60,000

Required:

Question 1: Record the transactions in the general journal.

Question 2: Prepare the stockholders' equity section of the C-Mobile Wireless balance sheet at December 31. The ending balance of Retained Earnings is $90,000.

Note: Please show the work not just the answer.