I am doing my accounting work and I am having trouble with this section please help

SoccerBoss
Category:
Accounting
Price: $20 USD

Question description

Rocky Mountain Sounds Corp., an electric guitar retailer, was organized by Cathy Dewitt, Melody Leimbach, and Mario Torres. The charter authorized 600,000 shares of common stock with a parof $60. The following transactions affecting stockholders' equity were completed during the first year of operations.

Journalize the entries to record the transactions.

Issued 8,000 shares of stock at par to Cathy Dewitt for cash.

Issued 450 shares of stock at par to Mario Torres for promotional services provided in connection with the organization of the corporation, and (2) issued 20,000 shares of stock at par to Mario Torres for cash.

Purchased land and a building from Melody Leimbach. The building is mortgaged for $432,000 for 20 years at 7% and there is accrued interest of $8,000 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $134,000 and the building at $645,000, and that Melody Leimbach'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, if an amount box does not require an entry, leave it blank.


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: University of Virginia
PREMIUM TUTOR
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors