Stock Transactions for Corporate Expansion 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% Stock, $25 par (300,000 shares authorized, 80,000 shares issued) $2,000,000 400,000 Paid-In Capital in Excess of Par-Preferred Stock 20,000,000 Common Stock, $100 par (700,000 shares authorized, 200,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings 1,600,000 40,000,000 At the annual stockholders' meeting on March 31, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $9,800,000. The plan provided (a) that a building, valued at $2,600,000, and the land on which it is located, valued at $3,800,000, be acquired in accordance with preliminary negotiations by the issuance of 60,000 shares of common stock valued at $93 per share, (b) that 50,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $1,900,000. The plan was approved by the stockholders and accomplished by the following transactions: May 11. Issued 60,000 shares of common stock in exchange for land and a building, according to the plan. Issued 50,000 shares of preferred stock, receiving $30 per share in cash. Borrowed $1,900,000 from Laurel National, giving a 6% mortgage note. May 20. May 31. Required: Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank. May 11. Issued 60,000 shares of common stock in exchange for land and a building, according to the plan. May 11 Building Land Common Stock Paid-In Capital in Excess of Par-Common stock WHA

Stock Transactions for Corporate Expansion On December 1 of the current yea, the following accounts and their balances appear in the ledger of Latte Corp, a colfee procestor: At the annual stockhoiders' meeting on March 31, the board of directors presented a plan for modernizing and expanding plant operations at a cont of appreximately $9,800,000. The plan provided (a) that a building, valued at $2,600,000, and the land on which i is located, valued at $3,800,000, be ocquired in accordance with preliminary negotiations by the issuance of 60,000 shares of common stock valued at $93 per share, (b) that 50,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $1,900,000. The plan was approved by the stockholders and accomplished by the following transactions: May 11. Issued 60,000 shares of common stock in exchange for tand and a buliding. according to the plan. May 20. Issued 50,000 shares of preferred stack, receiving $30 per share in cash. May 31. Borrowed $1,900,000 from Laurel National, glving o 6% mortgage note. Requiredi: Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank. May 11. Issued 60,000 shares of common stock in exchange for land and a building, according to the plan. May 11. Issued 60,000 shares of common stock in exchange for land and a building, according to the plan. May May 20. Issued 50,000 shares of preferred stock, receiving $30 per share in cash. Ma) May 31. Borrowed $1,900,000 from Laurel National, giving a 6% mortgage