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, $75 par (500,000 shares authorized, 150,000 shares issued) $11,250,000 Paid-In Capital in Excess of Par-Preferred Stock 1,800,000 Common Stock, $100 par (700,000 shares authorized, 250,000 shares issued) 25,000,000 Paid-In Capital in Excess of Par-Common Stock 2,000,000 50,000,000 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 $25,400,000. The plan provided (a) that a building, valued at $3,700,000, and the land on which it is located, valued at $5,400,000, be acquired in accordance with preliminary negotiations by the issuance of 85,000 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 $10,700,000. The plan was approved by the stockholders and accomplished by the following transactions: May 11. Issued 85,000 shares of common stock in exchange for land and a building, according to the plan. May 20. Issued 70,000 shares of preferred stock, receiving $80 per share in cash. May 31. Borrowed $10,700,000 from Laurel National, giving a 6% mortgage note. Required: Journalize the entries to record the foregoing transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. May 11. Issued 85,000 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 Feedback Check My Work When stock is issued in exchange for assets other than cash, such as land, buildings, and equipment, the assets acquired are recorded at their fair market value. At what value do common and preferred stock accounts have to be recorded? May 20. Issued 70,000 shares of preferred stock, receiving $80 per share in cash. May 20 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred stock Feedback Check My Work 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? May 31. Borrowed $10,700,000 from Laurel National, giving a 6% mortgage note. May 31