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 the mortgage note and accrued interest. It is agreed that the land is to be valued at $126,000 and the building at $725,000, and that Gretchen Northway will be issued stock at par.
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 the mortgage note and accrued interest. It is agreed that the land is to be valued at $126,000 and the building at $725,000, and that Gretchen Northway will be issued stock at par.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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 the mortgage note and accrued interest. It is agreed that the land is to be valued at $126,000 and the building at $725,000, and that Gretchen Northway will be issued stock at par.
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