ACCT- Week 8 assignment – P13-37A and P16-34A

ACCT- Week 8 assignment – P13-37A and P16-34A

Question

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 shares of 5%, $100-par preferred stock, and 110,000 shares of no-par common stock. B-Mobile completed the following transactions:
Oct 2 Issued 19,000 shares of common stock for equipment with a market value of $110,000.
6 Issued 800 shares of preferred stock to acquire a patent with a market value 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 at October 31. The ending balance of Retained earnings is $92,000.

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The 2015 comparative balance sheet and income statement of Rolling Hills, Inc., follow:

Additionally, Rolling Hills purchased land of $23,600 by financing it 100% with long-term notes payable during 2015. During the year, there were no sales of land or equipment, no additional issuances of notes payable, no retirements of stock, and no treasury stock transactions.
Requirements
1. Prepare the 2015 statement of cash flows, formatting operating activities by the indirect method.
2. How will what you learned in this problem help you evaluate an investment?