Selected Stock TransactionsAlpha Sounds Corp., an electric guitar retailer, wasorganized by Michele Kirby, Paul Glenn, and GretchenNorthway. The charter authorized 450,000 shares ofcommon stock with a par of $1. The following transactionsaffecting stockholders' equity were completed during thefirst year of operations.Journalize the entries to record the transactions.If an amount box does not require an entry, leave it blank.a. Issued 12,000 shares of stock at par to Paul Glenn forcash.Cash ✔Common Stock ✔FeedbackCheck My Workb. (1) Issued 900 shares of stock at par to Michele Kirbyfor promotional services provided in connection with theorganization of the corporation, and (2) issued 23,000shares of stock at par to Michele Kirby for cash.(1) Organizational Expenses ✔Common Stock ✔(2) Cash ✔Common Stock ✔FeedbackCheck My Workc. Purchased land and a building from Gretchen Northwayin exchange for stock issued at par. The building ismortgaged for $469,000 for 20 years at 7% and there isaccrued interest of $6,000 on the mortgage note at thetime of the purchase. The corporation agreed to assumeresponsibility for paying the mortgage note and accruedinterest. It is agreed that the land is to be valued at$128,000 and the building at $700,000, and that GretchenNorthway will be issued stock at par.Land ✔Building ✔Interest Payable ✔Mortgage Note Payable ✔Common Stock ✔FeedbackCheck My WorkFaunaPrevious Next>Jubmit Accianmon

Journal entry represents the book where the transactions are recorded on initial basis. The…

Selected Stock Transactions 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.

Selected Stock Transactions 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.

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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Recording the Sale of Common and Preferred Stock At the end of its first year of operations, Mulligan Corporation has outstanding shares of 94,000 common stock and 15,000 preferred stock. The State of Michigan authorized Mulligan to issue 16,000 shares of 6% preferred stock with a par value of $35 per share and 95,000 shares of common stock with a par value of $5 per share. Any common stock sold during the year had a selling price of $16 per share. Mulligan's preferred stock was issued at $52.50. Required: Prepare the journal entry to record the issuance of stock during the year. If an amount box does not require an entry, leave it blank. Cash Preferred Stock Additional Paid-in Capital-Preferred Stock Common Stock Additional Paid-In Capital-Common Stock 475,000 WALSHAASTE 475,000
Selected Stock Transactions Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 400,000 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 7,000 shares of stock at par to Paul Glenn for cash. b. (1) Issued 600 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 building is mortgaged for $469,000 for 20 years at 7% and there is accrued interest of $6,500 on the mortgage note at the time of the purchase. The corporation agreed to…
A company reported the following stockholders' equity on January 1 of the current year: Common stock-$10 par value, 1,000,000 shares authorized; 260,000 shares issued Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Prepare journal entries for the following selected transactions. March 1 Purchased 11,000 shares of its own stock for $21 cash per share. May 5 Sold 5,000 shares of its treasury stock for $21 cash per share. October 12 Sold 3,000 shares of its treasury stock for $22 cash per share. View transaction list 1 2 Purchased 11,000 shares of its own stock for $21 cash per share. Sold 5,000 shares of its treasury stock for $21 cash per share. 3 Sold 3,000 shares of its treasury stock for $22 cash per share. $ 2,600,000 1,270,000 1,685,000 $ 5,555,000 X Credit >
Selected Stock Transactions Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 250,000 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 8,500 shares of stock at par to Paul Glenn for cash. Cash 8,500 Common Stock 8,500 Feedback Check My Work b. (1) Issued 750 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 21,000 shares of stock at par to Michele Kirby for cash. (1) Organizational Expenses 750 Common Stock 750 (2) Cash 21,000 Common Stock 21.000 Feedback Check My Work c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged…
Topic: Stockholders’ Equity Section of the Balance Sheet The following summaries for 1Maryland Service, Inc., and 2Grapone, Co., provide the information needed to prepare the stockholders’ equity section of each company’s balance sheet. The two companies are independent. Maryland is authorized to issue 44,000 shares of $1 par common stock. All the stock was issued at $11 per share. The company incurred net losses of $47,000 in 2009 and $15,000 in 2010. It earned net income of $32,000 in 2011 and $178,000 in 2012. The company declared no dividends during the four-year period. 2. Grapone’s charter authorizes the issuance of 70,000 shares of 5%, $14 par preferred stock and 470,000 shares of no-par common stock. Grapone issued 1,400 shares of the preferred stock at $14 per share. It issued 130,000 shares of the common stock for $260,000. The company’s retained earnings balance at the beginning of 2012 was $60,000. Net income for 2012 was $98,000, and the company declared the specified…
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Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows: Common Stock, $10 stated value (800,000 shares authorized, 540,000 shares issued) $5,400,000 Paid-In Capital in Excess of Stated Value-Common Stock 1,050,000 Retained Earnings 12,260,000 Treasury Stock (54,000 shares, at cost) 756,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $68,040. Apr. 10. Issued 105,000 shares of common stock for $1,890,000. June 6. Sold all of the treasury stock for $918,000. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. Aug. 15. Issued the certificates for the…
Selected stock transactions 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 13,500 shares of stock at par to Paul Glenn for cash. Cash Common Stock (1) Organizational Expenses Common Stock b. (1) Issued 450 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 20,000 shares of stock at pat to Michele Kirby for cash. (2) Cash Common Stock Land 13,500 Building Common Stock 13,500 70,000 450 20,000 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…
The following information pertains to Matthew Corporation. Prepare journal entries for the following dates: 1/1/22: the company issues 140,000 shares of common stock, $5 par, for $8 per share 2/1/22: the company issues 10,000 shares of common stock, $5 par value, for $9 per share 3/15/22: the company declares a $4 per share dividend, to stockholders of record on 4/15/22, payable on 5/10/22 4/15/22: date of record: 5/10/22: date of payment: 7/1/22: the board of directors declares a 15% stock dividend when the market value of the stock is $12 per share, to be distributed on 8/15/22. 8/15/22: the company distributes the stock dividend shares 10/31/22: the company declares a $5 per share cash dividend, to be paid on 11/30/22 11/30/22: the company pays the cash dividend
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…