Instructions On December 1 of the current year, the following accounts and the balances appear in the ledger of Latte Corp, a coffee processor 53,550,000 Preferred 2% Stock, $50 par (250,000 shares authorized, 71,000 shares issued) Paid-in Capital in Excess of ParPreferred Stock Common Stock, $35 par (1,000,000 shares authorized 408,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings 426,000 14 280,000 816,000 155,710,000 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 $3,405,000, and the land on which is located, valued at $1,718,000, be acqured in accordance with preliminary negotiations by the issuance of 122,000 shares of common stock (b) that 40,800 shares of the unissued preferred stock be issued through an underwriter and (c) that the corporation borrow $3,650,000. The plan was approved by the stockholders and accomplished by the following transactions May 11 20 Issued 122,000 shares of common stock in exchange for land and a building, according to the plan Issued 40 800 shares of preferred stock, receiving 352 per share in cash Borrowed $3.650,000 from Laurel National giving a 8% mortgage note 31 Journalize the entries to record the May transactions. Refer to the Chart of Accounts for exact wording of account titles JOURNAL ACCOUNTING FOLATI ASSETS UABUTES POST REF DEBT CREDIT DESCRIPTION DATE 1 3 4 22 $ apps 5 7