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Calculator eBook 42,000,000 Retained Eamings At the annual stockholders' meeting on March 31, the board of directors presented a plan for modernizing and expanding plant

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Calculator eBook 42,000,000 Retained Eamings 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 $18,300,000. The plan provided (a) that a building, valued at $3,200,000, and the land on which it is located, valued at $4,700,000, be acquired in accordance with preliminary negotiations by the issuance of 75,000 shares of common stock, (b) that 60,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $7,100,000. The plan was approved by the stockholders and accomplished by the following transactions: May 11. Issued 75,000 shares of common stock in exchange for land and a building, according to the plan. Issued 60,000 shares of preferred stock, receiving $55 per share in cash. May 20 Borrowed $7,100,000 from Laurel National, giving a 6 % mortgage note May 31 Required Journalize the entries to record the foregoing transactions. For a compound transaction, if an amount box does not require an entry, leave it blank May 11. Issued 75,000 shares of common stock in exchange for land and a building, according to the plan. May 11 May 20. Issued 60,000 shares of preferred stock, receiving $55 per share in cash. EE May 20 May 31. Borrowed $7,100,000 from Laurel National, giving a 6% mortgage note. May 31 Stock Transactions for Corporate Expansion 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 (300,000 shares authorized, 150,000 shares issued) $7,500,000 1,500,000 Paid-In Capital in Excess of Par-Preferred Stock 21,000,000 Common Stock, $100 par (1,000,000 shares authorized, 210,00o0 shares issued) 1,680,000 Paid-In Capital in Excess of Par-Common Stock 42,000,000 Retained Earnings 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 $18,300,000. The plan provided (a) that a building, valued at $3,200,000, and the land on preliminary negotiations by the issuance of 75,000 shares of common stock, (b) that 60,000 shares of the unissued preferred stock be issued through (c) that the corporation borrow $7,100,000. The plan was approved by the stockholders and accomplished by the following transactions: which it is located, valued at $4,700,000, be acquired in ac stock in exchange for land and a building, of common May 11. 1ssued 75,000 shares according to the plan. Issued 60,000 shares of preferred stock, receiving $55 per share in cash. May 20. May 31. Borrowed $7,100,000 from Laurel National, giving a 6% mortgage note. Required

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