Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 1,200,000 shares of common stock with a par of $1. The following transactions affecting stockholders' equity were completed during the first year of operations: Jan. 2 Issued 114,000 shares of stock at par to Paul Glenn for cash. 5 8 Issued 3.400 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation and issued 42,500 shares of stock at par to Michele Kirby for cash. (record as two separate transactions.) Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $189,900 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 $64,600 and the building at $224,100 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. Required: Journalize the entries to record the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 26,000 shares of preferred 2% stock. $100 par, and 600,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations: July 1 Issued 200,000 shares of common stock at par for cash. 1 Issued 400 shares of common stock at par to an attorney payment of legal fees for organizing the corporation Aug 7. Issued 66,200 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $149,800, S474,380 and $163,600 respectively. Sept. 20 Issued 19,400 shares of preferred stock at $107 for cash. Required: Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered
