On April 2, at the annual shareholders' meeting of Wild Things Corp., a meat processor, the board of directors presented a plan for modernizing and expanding plant opera- tions at a cost of approximately $3,650,000. The plan proposed (a) a building, valued at $1,680,000, and the land on which it is located, valued at $420,000, be acquired in accordance with preliminary negotiations by the issuance of 65,000 common shares; (b) 21,000 preferred shares be issued through an underwriter; and (c) the corporation borrow $700,000. The plan was approved by the shareholders and accomplished by the following transactions:
Jun. 9. Issued 65,000 common shares in exchange for the land and the building, according to the plan.
13. Issued 21,000 preferred shares, receiving $40 per share in cash.
25. Borrowed $700,000 from Central Bank, giving an 8% mortgage note.
No other transactions occurred during June.
Instructions
Journalize the entries to record the transactions