Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby,Paul Glenn,and Gretchen Northway. The charter authorized 500,000 shares of common stock with a par of $25. The following transactions affecting stockholders equity were completed during the first year of operations.

Journalize the entries to record the transactions.

1. Issued 10,500 shares of stock at par to Paul Glenn for cash.

2. 1Issued 800 shares of stock at par to Michele Kirby for promotional services provided in connection with the organized of the corporation, and (2) issued 24,000 shares of stock at par to Michele Kirby for cash.

3. Purchased land and a building from Gretchen Norway for stock issued at par. The building is mortgaged for $425,000 for 20 years at 7% and there is accured interest of $5,500 on the mortgage note at the time of the purchase. It is agree that land is to be priced at $167,000 and the building at $635,000, and that Northways equity will be exchanged for stock at par. The corporation agreed to assume responsibility for paying the mortgage note and the accured interest.