Sheldon Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Sheldon Optics on October 31 of the current year as follows:

At the annual stockholders' meeting on December 7, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $5,300,000. The plan provided(a) That the corporation borrows $2,000,000,(b) That 15,000 shares of the unissued preferred stock be issued through an underwriter, and(c) That a building, valued at $1,850,000, and the land on which it is located, valued at $162,500, be acquired in accordance with preliminary negotiations by the issuance of 17,500 shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions:Jan. 10. Borrowed $2,000,000 from Whitefish National Bank, giving a 7% mortgage note.21. Issued 15,000 shares of preferred stock, receiving $84.50 per share in cash.31. Issued 17,500 shares of common stock in exchange for land and a building, according to the plan.No other transactions occurred during January.InstructionsJournalize the entries to record the foregoing transactions.

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Preferred 2% Stock, $80 par (50,000 shares authorized, 25,000 shares issued).... Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $100 par (500,000 shares authorized, 50,000 shares issued).. $ 2,000,000 75,000 5,000,000 600,000 16,750,000 Paid-In Capital in Excess of Par-Common Stock Retained Earnings