General finance Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized1,000,000 shares of common stock with a par of $1. The following transactions affecting stockholders' equity were completed during thefirst year of operations:a. Issued 100,000 shares of stock at par to Paul Glenn for cash.b. Issued 3,000 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of thecorporation and issued 45,000 shares of stock at par to Michele Kirby for cash.c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $180,000 for 20years at 6%, and there is accrued interest of $5,200 on the mortgage note at the time of the purchase. It is agreed that the land is to bepriced at $60,000 and the building at $225,000 and that Gretchen Northway's equity will be exchanged for stock at par. The corporationagreed to assume responsibility for paying the mortgage note and the accrued interest.Journalize the entries to record the transactions.

a.AccountsDebitCreditCash100,000 Common Stock 100,000Transaction: Issued 100,000 shares of stock at…

Answered: Alpha Sounds Corp., an electric guitar…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 4PA: Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par...

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The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and 5,000,000 shares of $1 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
Copper Corporation was organized in May. It is authorized to issue 50,000,000 shares of $200 par value 7% preferred stock. It is also authorized to issue 75,000,000 shares of $5 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.
Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 1,100,000 shares of common stock with a par of $1. The following transactions affecting stockholders' equity were completed during the first year of operations: Jan. Issued 102,000 shares of stock at par to Paul Glenn for cash. Issued 3,600 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation and issued 42,500 shares of stock at par to Michele Kirby for cash. (record as two separate transactions.) 8 Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $177,100 for 20 years at 6%, and there is accrued interest of $4,700 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $57,800 and the building at $228,500 and that Gretchen Northway's equity will be exchanged for…
Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 1,100,000 shares of common stock with a par of $1. The following transactions affecting stockholders’ equity were completed during the first year of operations: Jan. 2 Issued 80,000 shares of stock at par to Paul Glenn for cash. 5 Issued 3,700 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation and issued 49,700 shares of stock at par to Michele Kirby for cash. (record as two separate transactions.) 8 Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $171,800 for 20 years at 6%, and there is accrued interest of $5,100 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $61,200 and the building at $224,800 and that Gretchen Northway’s equity will be…
Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 parvalue. During its first year, the following selected transactions were completed:a. Issued 6,000 shares of common stock for cash at $20 per share.b. Issued 2,000 shares of common stock for cash at $23 per share.Required:1. Show the effects of each transaction on the accounting equation.2. Give the journal entry required for each of these transactions.3. Prepare the stockholders’ equity section as it should be reported on the year-end balancesheet. At year-end, the accounts reflected a profit of $100.4. Incentive Corporation has $30,000 in the company’s bank account. What is the maximumamount of cash dividends the company can declare and distribute?
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Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 550,000 shares of common stock with a par of $1. The following transactions affecting stockholders' equity were completed during the first year of operations. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Issued 13,000 shares of stock at par to Paul Glenn for cash. b. (1) Issued 550 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 25,000 shares of stock at par to Michele Kirby for cash. c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $486,000 for 20 years at 7% and there is accrued interest of $9,000 on the mortgage note at the time of the purchase. The corporation agreed to assume responsibility for paying…
Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 450,000 shares of common stock with a par of $1. The following transactions affecting stockholders' equity were completed during the first year of operations. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Issued 14,000 shares of stock at par to Paul Glenn for cash. b. (1) Issued 900 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 19,000 shares of stock at par to Michele Kirby for cash. c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The land has a fair value of $70,000, and the building has a fair value of $130,000.
During its first year of operations, Zhang's Electronics Incorporated completed the following transactions relating to shareholders' equity. January 5: Issued 2,000,000 shares of common stock for $ 35 per share. February 12: Issued 30, 000 shares of common stock to accountants for $1,050, 000 of professional services. The articles of incorporation authorize 5, 000, 000 shares of common stock with a par of $1 per share and 1,000,000 preferred shares with a par of $100 per share. Required: Record the above transactions in general journal form. Note: If no entry is required for a transaction /event, select "No journal entry required" in the first account field.
Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $18 par value, 12,700 shares authorized. During the year, the following selected transactions were completed: a. Sold 6,300 shares of common stock for cash at $36 per share. b. Sold 2,300 shares of common stock for cash at $41 per share. c. At year-end, the company reported net income of $7,200. No dividends were declared. E11-5 Part 2 2. Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated by a minus sign. Stockholders' equity Contributed capital: TARRANT CORPORATION Balance Sheet (Partial) At December 31, This year Total contributed capital Total stockholders' equity $ 0 0

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