On January 31 of the current year, the following accounts and their balances appear in the ledger of Gargantuan Corp., a meat processor:

At the annual stockholders' meeting on April 2, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately \(\$ 2,550,000\). The plan provided

(a) that a building, valued at \(\$ 1,200,000\), and the land on which it is located, valued at \(\$ 300,000\), be acquired in accordance with preliminary negotiations by the issuance of 45,000 shares of common stock,

(b) that 15,000 shares of the unissued preferred stock be issued through an underwriter, and

(c) that the corporation borrow \(\$ 500,000\). 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

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Preferred 3% Stock, $25 par (50,000 shares authorized, 30,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $30 par (400,000 shares authorized, 120,000 shares issued) ..... Paid-In Capital in Excess of Par-Common Stock Retained Earnings $ 750,000 90,000 3,600,000 300,000 5,794,000