Country Sounds Corp., an electric guitar retailer, was organized by Julie Arnold, Joe Harris, and Scott Pickens. The charter authorized 500,000 shares of common stock with a par of $12. The following transactions affecting stockholders' equity were completed during the first year of operations:
a. Issued 20,000 shares of stock at par to Julie Arnold for cash.
b. Issued 500 shares of stock at par to Scott Pickens for promotional services provided in connection with the organization of the corporation, and issued 18,000 shares of stock at par to Scott Pickens for cash.
c. Purchased land and a building from Joe Harris. The building is mortgaged for $200,000 for 25 years at 7%, and there is accrued interest of $2,200 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $75,000 and the building at $240,000, and that Joe Harris'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.