Stock transaction for corporate expansion 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 2% Stock, $25 par (500,000 shares authorized, 100,000 shares issued) $2,500,000 Paid-In Capital in Excess of Par-Preferred Stock 500,000 Common Stock, $100 par (900,000 shares authorized, 270,000 shares issued) 27,000,000 Paid-In Capital in Excess of Par-Common Stock 2,160,000 Retained Earnings 54,000,000 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 $12,750,000. The plan provided (a) that the corporation borrow $2,400,000 (b) that $65,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that a building, valued at 3,400,000 and the land which it is located, valued at 5,000,000 be acquired accordance with preliminary negotiations by the issuance of 80,000. shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions: Oct. 9. Borrowed $2,400,000 from St. Peter City Bank, giving a 4% mortgage note, Oct. 17. Issued 65,000 shares of preferred stock, receiving $30 per share in cash. Oct. 28. Issued 80,000 shares of common stock in exchange for land and a building, according to the plan. Required: Journalize the entries to record the October transactions. If an amount box does not require an entry, leave it blank. Oct. 9 Cash 2.400.00 Mortgage Note Payable 2,400,000 Oct. 17 Cash 1,950,000 Preferred Stock 1,830,000 Pald-In Capital in excess of Par-Preferred Stock 120,000 x Required: Journalize the entries to record the October transactions. If an amount box does not require an entry, leave it blank. Oct. 9 Cash 2,400,000 Mortgage Note Payable 2,400,000 Oct. 17 Cash 1,950,000 Preferred Stock 1,830,000 x Paid-In Capital in Excess of Par-Preferred Stock 120,000 x Oct. 28 Building 3,400,000 Land 5.000.000 Common Stock 4,500,000 X Pald-In Capital in Excess of Par-Common Stock 3,900,000 X Feedback Check My Work What is the company receiving? What is the company receiving by issuing shares? What type of shares is the company issuing? At what value do the common and preferred stock accounts have to be recorded? When stock is issued in exchange for assets other than cash, such as land, buildings, and equipment, the assets acquired are recorded their fair market value. At what value does common and preferred stock accounts have to be recorded