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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 stockholders equity were completed during the first year of operations: Journalize the entries to record the transactions. a. Issued 100,000 shares of stock at par to Paul Glenn for cash. If an amount box does not require an entry, leave it blank. Cash v 100.000 Common Stock v 1.000,000 Feedback Check My Work What is the company receiving in exchange for issuing the shares? At what price are the shares being sold? b. (1) Issued 3,000 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 45,000 shares of stock at par to Michele Kirby for cash. If an amount box doe not require an entry, leave it blank, (1) Organizational Expenses 3.000 V Common Stock v 1,000,000 Cash (2) 45.000 Common Stock v 1.000.000 Feedback Check My Work Recall that shares of stock may be issued for other purposes besides receiving cash. Why was Mickey issued 400 shares? 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 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. If an amount box does not require an entry, leave it blank.

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 stockholders equity were completed during the first year of operations: Journalize the entries to record the transactions. a. Issued 100,000 shares of stock at par to Paul Glenn for cash. If an amount box does not require an entry, leave it blank. Cash v 100.000 Common Stock v 1.000,000 Feedback Check My Work What is the company receiving in exchange for issuing the shares? At what price are the shares being sold? b. (1) Issued 3,000 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 45,000 shares of stock at par to Michele Kirby for cash. If an amount box doe not require an entry, leave it blank, (1) Organizational Expenses 3.000 V Common Stock v 1,000,000 Cash (2) 45.000 Common Stock v 1.000.000 Feedback Check My Work Recall that shares of stock may be issued for other purposes besides receiving cash. Why was Mickey issued 400 shares? 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 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. If an amount box does not require an entry, leave it blank.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: Selected stock transactions The following selected accounts appear in the ledger of Parks...
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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 stockholders' equity were completed during the first year of operations: Journalize the entries to record the transactions. a. Issued 100,000 shares of stock at par to Paul Glenn for cash. If an amount box does not require an entry, leave it blank. Cash v 100,000 Common Stock v 1,000,000 X Feedback V Check My Work What is the company receiving in exchange for issuing the shares? At what price are the shares being sold? b. (1) Issued 3,000 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 45,000 shares of stock at par to Michele Kirby for cash. If an amount box does not require an entry, leave it blank. (1) Organizational Expenses v 3,000 Common Stock v 1,000,000 (2) Cash v 45,000 Common Stock v 1,000,000 Feedback V Check My Work Recall that shares of stock may be issued for other purposes besides receiving cash. Why was Mickey issued 400 shares? 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 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. If an amount box does not require an entry, leave it blank.
Transcribed Image Text: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 stockholders' equity were completed during the first year of operations: Journalize the entries to record the transactions. a. Issued 100,000 shares of stock at par to Paul Glenn for cash. If an amount box does not require an entry, leave it blank. Cash v 100,000 Common Stock v 1,000,000 X Feedback V Check My Work What is the company receiving in exchange for issuing the shares? At what price are the shares being sold? b. (1) Issued 3,000 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 45,000 shares of stock at par to Michele Kirby for cash. If an amount box does not require an entry, leave it blank. (1) Organizational Expenses v 3,000 Common Stock v 1,000,000 (2) Cash v 45,000 Common Stock v 1,000,000 Feedback V Check My Work Recall that shares of stock may be issued for other purposes besides receiving cash. Why was Mickey issued 400 shares? 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 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. If an amount box does not require an entry, leave it blank.
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 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. If an amount box does not reguire an entry, leave it blank. Feedback V Check My Work Remember you are looking at this information from the company's perspective. What is the company acquiring? What is the company taking on with respect to these assets?
Transcribed Image Text: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 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. If an amount box does not reguire an entry, leave it blank. Feedback V Check My Work Remember you are looking at this information from the company's perspective. What is the company acquiring? What is the company taking on with respect to these assets?
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