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, 150,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $100 par (700,000 shares authorized, 240,000 shares issued) $3,750,000 600,000 24,000,000 1,920,000 48,000,000 Paid-In Capital in Excess of Par-Common Stock Retained Earnings 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 $15,300,000. The plan provided (a) that a building, valued at $3,900,000, and the land on which it is located, valued at $5,700,000, be acquired in accordance with preliminary negotiations by the issuance of 90,000 shares of common stock, (b) < that 70,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $3,600,000. The plan was approved by the stockholders and accomplished by the following transactions: May 11. May 20. May 31. Required: Issued 90,000 shares of common stock in exchange for land and a building, according to the plan, Issued 70,000 shares of preferred stock, receiving $30 per share in cash. Borrowed $3,600,000 from Laurel National, giving a 6% mortgage note.