Instructions Willow Creek Nursery, with an authorization of 78,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day follows: Willow Creek Nursery UNADJUSTED TRIAL BALANCE October 1, 20- ACCOUNT TITLE DEBIT CREDIT 1 Cash 4,455,500.00 2 Land 837,000.00 2,712,000.00 3 Buildings Preferred 1% Stock, $80 par 4 3,120,000.00 5 Paid In Capital in Excess of Par-Preferred Stock 429,000.00 6 Common Stock, $30 par 3,990,000.00 7 Paid-In Capital in Excess of Par-Common Stock 465,500.00 8 Totals 8,004,500.00 8,004,500.00 All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Journalize the two entries to record the transactions summarized in the trial balance. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Willow Creek Nursery General Ledger REVENUE 410 Sales 610 Interest Revenue ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 191 Buildings 192 Accumulated Depreciation-Buildings 538 Office Supplies Expense LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 281 Mortgage Note Payable 537 Organizational Expenses 581 Depreciation Expense-Buildings 500 Miscellaneous Expense 710 Interest Expense EQUITY 236 Stock Dividends Distributable 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-in Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends Journalize the two entries to record the transactions summarized in the trial balance. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4. 5 6 7