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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
On December of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a coffee processor:
Preferred Stock, $ par shares authorized, shares issued $
PaidIn Capital in Excess of ParPreferred Stock
Common Stock, $ par shares authorized, shares issued
PaidIn Capital in Excess of ParCommon Stock
Retained Earnings
At the annual stockholders meeting on March the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $ The plan provided a that a building, valued at $ and the land on which it is located, valued at $ be acquired in accordance with preliminary negotiations by the issuance of shares of common stock, b that shares of the unissued preferred stock be issued through an underwriter, and c that the corporation borrow $ The plan was approved by the stockholders and accomplished by the following transactions:
May Issued shares of common stock in exchange for land and a building, according to the plan.
Issued shares of preferred stock, receiving $ per share in cash.
Borrowed $ from Laurel National, giving a mortgage note.
Required:
Journalize the entries to record the May transactions.
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