At the annual stockholders' meeting on March 31, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $11,000,000. The plan provided (a) that a building, valued at $3,375,000, and the land on which it is located, valued at $1,500,000, be acquired in accordance with preliminary negotiations by the issuance of 125,000 shares of common stock valued at $39 per share, (b) that 40,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $4,000,000. The plan was approved by the stockholders and accomplished by the following transactions: NSTRUCTIONS Journalize the entries to record the May transactions. OBJ. 3 On December 1 of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a coffee processor: Preferred 2\% Stock, \$50 par (250,000 shares authorized, 80,000 shares issued) $4,000,000 560,000 Common Stock, $35 par (1,000,000 shares authorized, 400,000 14,000,000 shares issued) Paid-In Capital in Excess of Par-Common Stock 1,200,000 Retained Earnings 180,000,000