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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 transactions affecting stockholdersÃ¢â‚¬â„¢ equity were completed during the first year of operations: a. Issued 100,000 shares of stock at par to Paul Glenn for cash. a. Issued 100,000 shares of stock at par to Paul Glenn for cash. b. Issued 3,000 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and issued 45,000 shares of stock at par to Michele Kirby for cash. c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $180,000 for 20 years at 6%, and there is accrued interest of $5,200 on the mortgage note 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 NorthwayÃ¢â‚¬â„¢s equity will be exchanged for stock at par. The corporation agreed to as- sume responsibility for paying the mortgage note and the accrued interest. Journalize the entries to record the transactions.
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