Answer Happy

Selected Stock Transactions Alpha Sounds Corp, an electric guitar retaler, was organized by Michele Kirty, 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. Cosb - 100,000 100,000 Common- stock 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 3,000 Expense coob 15,000 3,000 cash 45,000 178 Chmmba 45,000 stock c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $160,000 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. (2)