Selected Stock Transactions Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 500,000 shares of common stock with a par of $1. The following transactions affecting stockholders' equity were completed during the first year of operations. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Issued 10,000 shares of stock at par to Paul Glenn for cash. Cash 10,000 10,000 Common Stock Feedback Check My Work What is the company receiving in exchange for issuing the shares? At what price are the shares being sold? b. (1) Issued 900 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 15,000 shares of stock at par to Michele Kirby for cash. (1) Organizational Expenses 900 Common Stock 900 (2) Cash 15,000 b. (1) Issued 900 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 15,000 shares of stock at par to Michele Kirby for cash. (1) Organizational Expenses 900 Common Stock 900 (2) Cash 15,000 Common Stock 15,000 Check My Work Recall that shares of stock may be issued for other purposes besides receiving cash. Why were the shares issued? c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $432,000 for 20 years at 7% and there is accrued interest of $5,000 on the mortgage note at the time of the purchase. The corporation agreed to assume responsibility for paying the mortgage note and accrued interest. It is agreed that the land is to be valued at $251,000 and the building at $645,000, and that Gretchen Northway will be issued stock at par. Land 251,000 Building 645,000 Interest Payable 432,000 X Mortgage Note Payable 251,000 X Common Stock 459,000 Feedback