On January 1 of the current year, the following accounts and their balances appear in the ledger of Dahof Corp., a meat processor:

Preferred 4% Stock, $100 par (20,000 shares authorized, 6,000 shares issued) ......$ 600,000

Paid-In Capital in Excess of Par—Preferred Stock ................120,000

Common Stock, $50 par (100,000 shares authorized, 50,000 shares issued) .......2,500,000

Paid-In Capital In Excess of Par—Common Stock ................320,000

Retained Earnings ............................1,675,000

At the annual stockholders’ meeting on March 6, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $800,000. The plan provided (a) that a building, valued at $225,000, and the land on which it is located, valued at

$45,000, be acquired in accordance with preliminary negotiations by the issuance of 4,800 shares of common stock, (b) that 3,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $155,000. The plan was approved by the stockholders and accomplished by the following transactions:

Apr. 3 Issued 4,800 shares of common stock in exchange for land and a building, according to the plan.

18 Issued 3,000 shares of preferred stock, receiving $125 per share in cash from the underwriter.

28 Borrowed $155,000 from Northeast National Bank, giving an 8% mortgage note.

No other transactions occurred during April.

Instructions

Journalize the entries to record the foregoing transactions.