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Chapter 1 2 - Handout # 1 - Journalizing Stock Transactions ( Acct& 2 0 2 ) Alpha Sounds Corp., an electric guitar retailer, was
Chapter Handout # Journalizing Stock Transactions Acct&
Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized shares of preferred stock with a par of $ and shares of common stock with a par of $ The following transactions affecting stockholders' equity were completed during the first year of operations:
Issued shares of common stock for $ per share for cash.
Issued shares of common stock for $ per share for cash.
Issued shares of preferred stock for $ per share for cash.
Issued shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation. The promotional services are valued at $
Purchased a building from Gretchen Northway in exchange for shares of stock. The building has a fair value of $ and the common stock value cannot be determined.
Assume # but that the common stock value is determined to be $ per share and the company want to use this value to record the transaction instead of the building value.
Now assume that the common stock was nopar stock. How would this change your entries?
Now assume that the common stock was nopar stock, but had a stated value of $ per share, how would this change your entries?
Journalize the entries to record the transactions and show impact on the accounting equation.
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