The word document has the instructions and the excel document is use to fill in the answer

Problem 8-6 Name: Section: Score: 0% Key Code: 2 Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear in the column to the right of an incorrect answer. 1. Plan 1 Plan 2 Plan 1 Plan 2 Earnings before interest and income tax Deduct interest on bonds Income before income tax Deduct income tax Net income Dividends on preferred stock Available for dividends on common stock Divide by shares of common stock outstanding Earnings per share on common stock 2. Earnings before interest and income tax Deduct interest on bonds Income before income tax Deduct income tax Net income Dividends on preferred stock Available for dividends on common stock Divide by shares of common stock outstanding Earnings per share on common stock 3. Plan 1: Plan 2: Plan 3: Plan 3 Plan 3 P8-4 stock transactions for corporate expansion Vaga Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Vaga Optics on December 31 of the current year as follows: Preferred 2% Stock, $120 par (50,000 shares authorized, 25,000 shares issued) $3,000,000 Paid-In Capital in Excess of ParPreferred Stock $400,000 Common Stock, $75 par (500,000 shares authorized, 300,000 shares issued) $22,500,000 Paid-In Capital in Excess of ParCommon Stock $540,000 Retained Earnings $55,000,000 At the annual stockholders' meeting on January 31, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $9,500,000. The plan provided (a) that the corporation borrow $4,500,000, (b) that 20,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that a building, valued at $1,200,000, and the land on which it is located, valued at $900,000, be acquired in accordance with preliminary negotiations by the issuance of 27,400 shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions: Mar. 8. Borrowed $4,500,000 from Conrad National Bank, giving a 6% mortgage note. 13. Issued 20,000 shares of preferred stock, receiving $130 per share in cash. 26. Issued 27,400 shares of common stock in exchange for land and a building, according to the plan. No other transactions occurred during March. Instructions Illustrate the effects on the accounts and financial statements of each of the preceding transactions