Prepare the journal entry necessary to record each transaction at December 31. Acquired a patent by issuing 2,500 shares of common stock and bonds with the face value of $100,000. The stock is currently selling for $27 per share and the bonds are selling at 98. PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF DEBIT CREDIT Purchased land by issuing 300 shares of preferred stock and 1,000 shares of common stock. The common stock is selling for $25 per share, but the preferred stock is not being actively traded. The value of the land is appraised at $57,000. PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REPF DEBIT CREDIT The corporation calls the 6,000 shares of preferred stock (originally issued at $108 per share) at a call price of $112 per share. Common stock is currently selling for $23 per share. The shareholders elect not to convert into common stock. PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REPF DEBIT CREDIT Same as Transaction 4, except that shareholders owning 4,000 shares of preferred stock elect to convert each share into 5 shares of common stock. The remaining 2,000 shares of preferred stock are retired. Additional Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF DEBIT CREDIT