OBJ. 3-Describe and illustrate the characteristics of stock, classes of stock, and entries for issuing stock. Pulsar Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Pulsar Optics on April 30 of the current year as follows: Preferred 1% Stock, $120 par (300,000 shares authorized, 36,000 shares issued) $4,320,000 Paid-In Capital in Excess of Par--Preferred Stock 180,000 Common Stock $15 par (2.000.000 shares authorized 1,400,000 shares issued) 21,000,000 Paid-In Capital in Excess of Par-Common Stock 3,500,000 Retained Earnings 78.000.000 hpang cangage.com/static/hbuievolindex-97813379130968-719859451-1005766&phate-100570&dockApp-101 12/132020 Pret Preview At the annual stockholders' meeting on August 5, the board of directors presented a plan for modemizing and expanding plant operations at a cost of approximately $9,000,000. The plan provided (a) that the corporation borrow $1,500,000, (b) that 20,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that a building, valued at $4,150,000, and the land on which it is located, valued at $800,000, be acquired in accordance with preliminary negotiations by the issuance of 300,000 shares of common stock valued at $16.50 per share. The plan was approved by the stockholders and accomplished by the following transactions Oct. 9. Borrowed $1,500,000 from St. Peter City Bank giving a 4% mortgage note 17. Issued 20,000 shares of preferred stock receiving $126 per share in cash 28. Issued 300,000 shares of common stock in exchange for land and a building, according to the plan Instructions Journalize the entries to record the October transactions. 27