Journalize the entries to record the transactions

Assignment Help Financial Accounting

Reference no: EM13751854

Heavenly Sounds Corp., an electric guitar retailer, was organized by Mickey Blessing, John Frey, and Nancy Stein. The charter authorized 750,000 shares of common stock with a par $20. the following transactions affecting stockholders equity were completed during the first year of operations:1. Issued 45,000 shares of stock at par to John Frey for cash. 2. Issued 400 shares of stock at par to Mickey Blessing for promotional services provided in connection with the organization of the corporation, and issued 60,000 shares of stock at par to Mickey Blessing for cash. 3. Purchased land and a building from Nancy Stein in exchange for stock issued at par. The building is mortgaged for $450,000 for 20 years at 4%, and there is accrued interest of $1,500 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $150,000 and the building at $600,000 and that Nancy Stein's equity will be exchanged for stock at par. The corporation agreed to assume responsibility for paying the mortgage note and the accrued interest. Journalize the entries to record the transactions

Reference no: EM13751854

Questions Cloud

Street improvement fund and governmental activities journals : Two property owners along Elm Street claimed a new sidewalk was constructed further from the street than where they had granted easements. A resurvey confirmed that the sidewalk was constructed in the wrong place, but the city did not believe that th..

What would be the output of the count down routine : If the call count down (10) was issued what would be the output of the count down routine

Activity affect the contribution margin and the net profit : Explain how changes in activity affect the contribution margin and the net profit. Be sure to discuss both sales activity changes and production activity changes. Use the Contribution Income statement format as a framework for your discussion.

Proposal addressing each of the stakeholder concerns : Write a two to three page proposal addressing each of the stakeholder concerns. Use the technologies below for the areas of concern

Journalize the entries to record the transactions : Heavenly Sounds Corp., an electric guitar retailer, was organized by Mickey Blessing, John Frey, and Nancy Stein. The charter authorized 750,000 shares of common stock with a par $20. the following transactions affecting stockholders equity were comp..

Discuss how you adopt one of characteristics in life : Discuss how you could adopt one of these characteristics in your role at work or in your personal life.

What is the amount of cost of goods sold : A company has net sales of $1,842,000, sales commissions of $195,000, net income of $367,400, and the gross profit ratio of 65%. What is the amount of cost of goods sold?

How many trees must be sold annually to break even : Dickens Co. sells three styles of Christmas trees - past, present and future. Fixed costs total 3,900 per year. The following information is available:

Fundraiser to benefit various environmental causes : Thoreau co. is planning a fundraiser to benefit various environmental causes. all proceeds in excess of costs will be donated to these causes. the planning committee has developed the following budget for the event: ballroom rental: 1900 entertainmen..

User Account

All Pages