Selected Stock Transactions Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 550,000 shares of common stock with a par of $30. The following transactions affecting stockholders' equity were completed during the first year of operations Journalize the entries to record the transactions a. Issued 13,000 shares of stock at par to Paul Glenn for cash. Cash 13,00 x Common Stock 15,000 x Feedback Check My Work What is the company receiving in exchange for asuing the share? Al wat price are the share being toket? b. (1) Issued 800 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 13.000 x Common Stock (2) Cash 15.000 x Common Stock 15.00 X Feed Check My W Recall that three of stock may be used for other purposes besides reiving cah Why were the share anved? c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $415,000 for 20 years at 7% and there is accrued interest of $5.500 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $248,000 and the building at $620,000, and that 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. For a compound transaction, an enout box does not require an entry, leave it blank. Land 24 Building 90.000 Interest Payable 5.500 Mortgage Note Payable Common Stock 47.69 QWE Previous Next