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 4% Stock, $50 par (500,000 shares authorized, 140,000 shares issued)	$7,000,000
Paid-In Capital in Excess of ParPreferred Stock	1,400,000
Common Stock, $100 par (900,000 shares authorized, 220,000 shares issued)	22,000,000
Paid-In Capital in Excess of ParCommon Stock	1,760,000
Retained Earnings	44,000,000

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 $18,675,000. The plan provided (a) that a building, valued at $3,400,000, and the land on which it is located, valued at $5,000,000, be acquired in accordance with preliminary negotiations by the issuance of 80,000 shares of common stock valued at $95 per share, (b) that 65,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $6,700,000. The plan was approved by the stockholders and accomplished by the following transactions:

May 11.	Issued 80,000 shares of common stock in exchange for land and a building, according to the plan.
May 20.	Issued 65,000 shares of preferred stock, receiving $55 per share in cash.
May 31.	Borrowed $6,700,000 from Laurel National, giving a 6% mortgage note.

Required:

Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank.

May 11. Issued 80,000 shares of common stock in exchange for land and a building, according to the plan.

May 11		fill in the blank e1e7dc09302e014_2	fill in the blank e1e7dc09302e014_3
		fill in the blank e1e7dc09302e014_5	fill in the blank e1e7dc09302e014_6
		fill in the blank e1e7dc09302e014_8	fill in the blank e1e7dc09302e014_9
		fill in the blank e1e7dc09302e014_11	fill in the blank e1e7dc09302e014_12

May 20. Issued 65,000 shares of preferred stock, receiving $55 per share in cash.

May 20		fill in the blank 18016bf7e029fc2_2	fill in the blank 18016bf7e029fc2_3
		fill in the blank 18016bf7e029fc2_5	fill in the blank 18016bf7e029fc2_6
		fill in the blank 18016bf7e029fc2_8	fill in the blank 18016bf7e029fc2_9

May 31. Borrowed $6,700,000 from Laurel National, giving a 6% mortgage note.

May 31		fill in the blank 3bac25087fe1052_2	fill in the blank 3bac25087fe1052_3
		fill in the blank 3bac25087fe1052_5	fill in the blank 3bac25087fe1052_6