Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized $600,000$ 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.

Question Content Area

a$.$ Issued $13,000$ shares of stock at par to Paul Glenn for cash. If an amount box does not require an entry, leave it blank.

Cash

Common Stock B$.(1)$ Issued $550$ shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and $(2)$ issued $19,000$ shares of stock at par to Michele Kirby for cash. If an amount box does not require an entry, leave it blank.

$(1)$

Organizational Expenses

Common Stock

$(2)$

Cash

Common Stock C$.$ Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $$392,000$ for $20$ years at $7\%$ and there is accrued interest of $$6,500$ on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $$147,000$ and the building at $$585,000$ 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.

Land

Building

Interest Payable

Mortgage Note Payable

Common Stock