Selected stock transactions Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 1,000,000 shares of common stock with a par of $1. The followingtransactions affecting stockholders' equity were completed during the first 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 forpromotional services provided in connection with the organizationof the corporation and issued 45,000 shares of stock at par toMichele Kirby for cash. c. Purchased land and a building from Gretchen Northway inexchange for stock issued at par. The building is mortgaged for$180,000 for 20 years at 6%, and there is accrued interest of $5,200on the mortgage note at the time of the purchase. It is agreed thatthe land is to be priced at $60,000 and the building at $225,000 and that Gretchen North way's equity will be exchanged for stock at par.The corporation agreed to assume responsibility for paying themortgage note and the accrued interest.Journalize the entries to record the transactions.
Selected stock transactions
Alpha Sounds Corp., an electric guitar retailer, was organized by Michele
Kirby, Paul Glenn, and Gretchen Northway. The charter authorized
1,000,000 shares of common stock with a par of $1. The following
transactions affecting
first 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 the corporation 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 20 years 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 be priced at $60,000 and the building at $225,000 and
that Gretchen North way's equity will be exchanged for stock at par.
The corporation agreed to assume responsibility for paying the
mortgage note and the accrued interest.
Journalize the entries to record the transactions.
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