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 $10.

Journalize the entries to record the following transactions affecting stockholders equity, which were completed during the first year of operations. Refer to the Chart of Accounts for exact wording of account titles.

Jan (2) Issued 116,000 shares of stock at par to Paul Glenn for cash; (5) issued 3,100 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and issued 44,400 shares of stock at par to Michele Kirby for cash; (8) Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $189,300 for 20 years at 6%, and there is accrued interest of $4,700 on the mortgage note at the time of the purchased. It is agreed that the land is to be priced at $57,400 and the building at $223,500 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.

Chart of Accounts - Alpha Sounds Corp.

	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

390 Income Summary

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

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