70.2K

Verified Solution

Link Copied!

Selected Stock Transactions

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 $25. The following transactions affecting stockholders equity were completed during the first year of operations.

Selected Stock Transactions Alpha Sounds Corp. an electric guitar reader, was organized by Michele by Paul Glenn, and Gretchen Northway. The charter authored 550,000 shares of comment $25. The following transactions affecting stockholders' uty were completed during the best year of operations with prof Journalize the entries to record the transactions a. Issued 10,000 shares of stock at par to Paul Glenn for cash. b. (1) Issued 500 shares of stock at par to Michele Krby for promotional services provided in connection with the orga par to Michele Kirby for cash. o n of the corporation, and (2) sued 18.000 shares of stock at c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $35,000 for 20 years at and there are interest of $4,500 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $165,000 and the building at $575.000, and that Gretchen Northways guy will be exchanged for stock at pat. The corporation agreed to assume responsity for paying the mortgage note and the accredinterest an amount box does not require an entry, leave it blank Purchased land and a building from Gretchen Northway in exchange for stock issued at pac The building is mortgaged for $385,000 for 20 years at 7 and there is accrued interest of $4,500 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $165,000 and the building at $575,000, 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. Check My work more Check Workesmann

Answer & Explanation Solved by verified expert

See Answer