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tino4ka555 [31]
2 years ago
11

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. Journalize the entries to record the following transactions affecting stockholders' equity, which were completed during the first year of operations. Refer to the Chart of Accounts for exact wording of account titles.
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 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.
Business
1 answer:
Galina-37 [17]2 years ago
8 0

Answer:

A) Journal record for issuing 100,000 shares at par value to Paul Glenn

Dr Cash account 100,000

Cr Common Stock account 100,000

B) Journal record for issuing 3,000 shares at par value to Michele Kirby in exchange for promotional services

Dr Promotional Expenses account 3,000

Cr Common Stock account 3,000

Journal record for issuing 45,000 shares at par value to Michele Kirby

Dr Cash account 45,000

Cr Common Stock account 45,000

C) Journal record for land purchase in exchange for stock and mortgage loan + interests accrued

Dr Land account 60,000

Dr Building account 225,000

Cr Mortgage Loan account 180,000

Cr Interest Payable account 5,00

Cr Common Stock account 99,800

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During January 2020 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $2,000 we
ira [324]

Answer:

Expenditures-2020 in the amount of $200

Explanation:

General fund supplies made last year were an estimated amount of $2000 was spent. So for last year there would have been a debit and credit leg for this transaction as.

In the present year 2020 it was received at an actual cost of $2,200. The excess cost (2,200-2,000= $200) must be recognised.

So the debit is passed into expenditures for this year 2020 for amount $200.

5 0
3 years ago
Linda Day George Company had bonds outstanding with a maturity value of $300,000. On April 30, 2020, when these bonds had an una
mr_godi [17]

Answer:

Bonds Payable                                  300,000 debit

Loss on redemption- Bonds Payable 22,000 debit

                Cash                                              312,000 credit

                Discount on Bonds Payable          10,000 credit

--to record the reemption of old-bonds--

Explanation:

<em>call price</em> = 300,000 x 104/100 =          <em>312,000</em>

Bond payable (net) 300,000 - 10,000 = 290,000

Loss at redemption                                   22,000

We should recognize a loss as we are paying for the bonds 312,000 dollars while they are worth 290,000

To do the entry, we will write-off the bonds payable and the discount on bonds account. Wer will credit the cash used on the redemption and debit the expense.

8 0
3 years ago
Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, 2020. The one-year note carried a 6% rate
Nady [450]

Answer:

loan interest revenue  for 2020 is $720

loan interest revenue for 2021 is $240

Explanation:

The loan interest revenue in the year 2020 is for 9 months out of the total loan tenure of twelve months:

interest revenue for 2020=$16,000*6%*9/12=$720.00  

This would be debited to interest receivable and credited to interest revenue account.

interest revenue for 2021=$16,000*6%*3/12=$240.00  

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3 years ago
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Select the correct answer from each drop-down menu. which sector dominates developed economies such as the united states? in dev
professor190 [17]

Legal firms and hospitals are the that dominates the economy is the consumer service sector.

<h3>Which sector dominates developed economies such as the United States?</h3>

In the Unites State which is a developed country is highly dominated by the service sector, in US about 80% of the country's output. The US service sectors companies are technology, financial services, healthcare and retail, that dominated maximum economy.

Thus, Legal firms and hospitals

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It is important when you are trying to sell a product or service to someone, that they see the benefits themselves. As a sales person your job is to make sure the product you have is meeting the customers needs fully because if they don't see that, they won't make the purchase. As a customer, whenever I buy a product I run down a list of ways it will benefit me or why I need it. 
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