Instructions 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 (260,000 shares authorized, 76,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock $3,800,000 456,000 12,570,000 1,676,000 Common Stock, $30 par (1,000,000 shares authorized, 419,000 shares issued) Paid-In Capital in Excess of ParCommon Stock Retained Earnings 159,380,000 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 $3,335,000, and the land on which it is located, valued at $898,000, be acquired in accordance with preliminary negotiations by the issuance of 124,500 shares of common stock, (b) that 39,800 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $4,100,000. The plan was approved by the stockholders and accomplished by the following transactions: May 11 20 31 issued 124,500 shares of common stock in exchange for land and a building, according to the plan. Issued 39,800 shares of preferred stock, receiving $53 per share in cash. Borrowed $4,100,000 from Laurel National, giving a 5% mortgage note. Journalize the entries to record the May transactions. Refer to the Chart of Accounts for exact wording of account titles. PAUL IU JOURNAL Score: 78/112 ACCOUNTING EQUATION DESCRIPTION POST. REF. CREDIT ASSETS LIABILITIES EQUITY DATE May 11 DEBIT 898,000.00 Land Building 3,335,000.00 3,800,000.00 Common Stock Paid-In Capital in Excess of Par-Common Stock Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Cash Mortgage Note Payable Points 14 62121