I-Can-See Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of I-Can-See Optics on November 30 of the current year at the top of the following page.

At the annual stockholders' meeting on December 10, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately \(\$ 3,800,000\). The plan provided

(a) that the corporation borrow \(\$ 900,000\),

(b) that 10,000 shares of the unissued preferred stock be issued through an underwriter, and

(c) that a building, valued at \(\$ 1,675,000\), and the land on which it is located, valued at \(\$ 250,000\), be acquired in accordance with preliminary negotiations by the issuance of 16,000 shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions:

{Instructions}
Journalize the entries to record the foregoing transactions.objs. 2, 3, 4, 6

Transcribed Image Text:

Preferred 2% Stock, $80 par (40,000 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) Paid-In Capital in Excess of Par-Common Stock Retained Earnings. $ 2,000,000 120,000 5,000,000 300,000 12,794,000