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.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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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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