The charter authorized 750000 shares of common stock with a

Reference no: EM13570452

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 enries to record the transactions.

Reference no: EM13570452

Questions Cloud

Bubbas steakhouse has budgeted the following costs for a : 1.three costs incurred by pitt company are summarized

Assume a stock is initially priced at 50 and pays an annual : assume a stock is initially priced at 50 and pays an annual 1 dividend. an investor uses cash to pay 25 a share and

The contribution margin ratio is 40 for the company and : the contribution margin ratio is 40 for the company and the break-even point in sales is 150000. if the companys target

Briggs candle supply makes candles the sales mix of its : briggs candle supply makes candles. the sales mix of its three product lines is birthday candles 30 standard tapered

The charter authorized 750000 shares of common stock with a : heavenly sounds corp. an electric guitar retailer was organized by mickey blessing john frey and nancy stein. the

Explain in detail using your readings to support what you : abuse versus addictionexplain in detail using your readings to support what you say the relationship between abuse and

What are the key acquisition and inventory cycle accounts : what are the key acquisition and inventory cycle accounts for ford? what are the critical accounting policies for these

The fair market value at the time of conversion was 210000 : janet purchased her personal residence in 2000 for 250000 in january of 2009 she converted it to rental property. the

The plan requires quarterly installments to be paid to the : yuri co. operates a chain of gift shops. the company maintains a defined contribution pension plan for its employees.

User Account

All Pages