PR 13-2B Stock Transaction for Corporate Expansion OBJ. 3 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) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $15 par (2,000,000 shares authorized, 1,400,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings $ 4,320,000 180,000 21,000,000 3,500,000 78,000,000 At the annual stockholders' meeting on August 5, the board of directors presented a plan for modernizing 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.