HW 1 Chapter 12 eBook Calculator Selected Stock Transactions 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 transaction affecting stockholders' equity were completed during the first year of operations: Journalize the entries to record the transactions. a. Issued 100,000 shares of stock at par to Paul Glenn for cash. 110,000 Cash cron Stock 110,000 X Feedback b. (1) Issued 3,000 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 45,000 shares of stock at par to Michele Kirby for cash. (1) Organizational Expenses 2.000 x Common Stocky 2,200 x (a) 4 42,100 x Common Stock 42,100 x c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The bulding is mortgaged for $180,000 for 20 years at 6%, and there is accrued interest of $5,200 on the mortgage rate at the time of the purchase. It is agreed that the land is to be priced at $60,000 and the building at $225.000 and that Gretchen Northway's equty will be exchanged for stack at pat. The corporation agreed to assume responsibility for paying the mortgage note and the accrued interest For a compound transaction, an amount box does not require an entry leave it blank. Land & Previous Next Check My Work Emal instructor Save and submit is ment for Grad nament Seared 04.01%