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 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.) 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 stock at par. The corporation agreed to assume responsibility for paying the mortgage note and the accrued interest.

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 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.) 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 stock at par. The corporation agreed to assume responsibility for paying the mortgage note and the accrued interest.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On-Line Learning Corporation obtained a charter at the beginning of this year that authorized 63,000 shares of no-par common stock and 30,000 shares of preferred stock, $19 par value. The corporation was organized by four individuals who purchased a total of 36,000 shares of the common stock. The remaining shares were to be sold to other individuals. During the year, the following selected transactions occurred: a. Collected $38 cash per share from the four organizers and issued 9,000 shares of common stock to each of them. b. Sold 10,000 shares of common stock to an outsider at $76 cash per share. c. Sold 11,000 shares of preferred stock at $57 cash per share. Required: 1. Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) I'm unsure why this answer is wrong.
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B- Cell Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B- Cell to issue 60,000 shares of 7%, $50 par value cumulative preferred stock and 100,000 shares of $1 par value common stock. During the first month, B- Cell completed the following transactions: a (Click the icon to view the transactions.) Read the reguirements. Requirement 1. Record the transactions in the general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) More Info Requirements Oct. 2 Issued 21,000 shares of common stock for a building with a market value of $210,000. 1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of B- Cell's balance sheet at October 31, 2018. Assume B - Cell's net income for the month was $89,000. Oct. 6 Issued 950 shares of preferred stock for $90 per share. Oct. 9 Issued 14,000 shares of common stock for cash of…
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