Alpha Sounds Corp , an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway The charter authorized 1,000,000 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 94,000 shares of stock at par to Paul Glenn for cash 5 Issued 3,200 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation and issued 46,400 shares of stock at par to Michele Kirby for cash (record as two separate transactions ) 8 Purchased land and a building from Gretchen Northway in exchange for stock issued at par The building is mortgaged for $187,300 for 20 years at 6 , and there is accrued interest of $6,000 on the mortgage note at the time of the purchase It is agreed that the land is to be priced at $58,700 and the building at $228,800 and that Gretchen Northways equity will be exchanged for stock at par The corporation agreed to assume responsibility for paying the mortgage note and the accrued interest 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 CHART OF ACCOUNTS Alpha Sounds Corp General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 191 Building 192 Accumulated Depreciation Building LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid In Capital in Excess of Par Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid In Capital in Excess of Par Preferred Stock 331 Paid In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends

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Posted on Jul 30, 2024

Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 1,000,000 shares of common stock

Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 1,000,000 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 94,000 shares of stock at par to Paul Glenn for cash.
	5	Issued 3,200 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation and issued 46,400 shares of stock at par to Michele Kirby for cash. (record as two separate transactions.)
	8	Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $187,300 for 20 years at 6%, and there is accrued interest of $6,000 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $58,700 and the building at $228,800 and that Gretchen Northways equity will be exchanged for stock at par. The corporation agreed to assume responsibility for paying the mortgage note and the accrued interest.

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.

CHART OF ACCOUNTS

Alpha Sounds Corp.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
191	Building
192	Accumulated Depreciation-Building

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
236	Stock Dividends Distributable
241	Salaries Payable
261	Mortgage Note Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
315	Treasury Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
351	Cash Dividends
352	Stock Dividends