Question 8 12.5 pts P 12-2B pp. 598-599 with the following changes October 9 borrowed $1400000 NOT $1500000, October 17 issued 18000 shares NOT 20000, and October 28 issued 270000 shares NOT 300000 October 28 paid in capital in excess would be 900000 dr 450000 dr 900000 er 450000 Obj. 2 PR 12-2B Stock transaction for corporate expansion Pulsar Optics produces medical lasers for use in hospitals. The accounts and their balan 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 unis- sued preferred stock be issued through an underwriter, and (C) that a building, valued at Chapter 12 Corporations: Organization Stock Transactions, and Dividends 599 $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. 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