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.

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Chapter12: Corporations: Organization, Stock Transactions, And Dividends
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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 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 12,000 shares of stock at par to Paul Glenn for
cash.
Cash ✔
Common Stock ✔
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b. (1) Issued 900 shares of stock at par to Michele Kirby
for promotional services provided in connection with the
organization of the corporation, and (2) issued 23,000
shares of stock at par to Michele Kirby for cash.
(1) Organizational Expenses ✔
Common Stock ✔
(2) Cash ✔
Common Stock ✔
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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 $6,000 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
$128,000 and the building at $700,000, and that Gretchen
Northway will be issued stock at par.
Land ✔
Building ✔
Interest Payable ✔
Mortgage Note Payable ✔
Common Stock ✔
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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 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 12,000 shares of stock at par to Paul Glenn for cash. Cash ✔ Common Stock ✔ Feedback Check My Work b. (1) Issued 900 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 23,000 shares of stock at par to Michele Kirby for cash. (1) Organizational Expenses ✔ Common Stock ✔ (2) Cash ✔ Common Stock ✔ Feedback Check My Work 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 $6,000 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 $128,000 and the building at $700,000, and that Gretchen Northway will be issued stock at par. Land ✔ Building ✔ Interest Payable ✔ Mortgage Note Payable ✔ Common Stock ✔ Feedback Check My Work Fauna Previous Next> Jubmit Accianmon
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