Willow Creek Nursery, with an authorization of $72,000$ shares of preferred stock and $210,000$ shares of common stock, completed several transactions involving its stock on October $1,$ the first day of operations. The trial balance at the close of the day follows:

Willow Creek Nursery

UNADJUSTED TRIAL BALANCE

October $1,20--$

ACCOUNT TITLE DEBIT CREDIT

$1$

Cash

$3,347,500\mathrm{.}00$

$2$

Land

$860,000\mathrm{.}00$

$3$

Buildings

$2,077,000\mathrm{.}00$

$4$

Preferred $1\%$ Stock, $$80$ par

$2,640,000\mathrm{.}00$

$5$

Paid$-$In Capital in Excess of Par$-$Preferred Stock

$297,000\mathrm{.}00$

$6$

Common Stock, $$30$ par

$3,090,000\mathrm{.}00$

$7$

Paid$-$In Capital in Excess of Par$-$Common Stock

$257,500\mathrm{.}00$

$8$

Totals

$6,284,500\mathrm{.}00$

$6,284,500\mathrm{.}00$

All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings.

Journalize the two entries to record the transactions summarized in the trial balance.

Chart of Accounts

CHART OF ACCOUNTS

Willow Creek Nursery

General Ledger

ASSETS

$110$ Cash

$120$ Accounts Receivable

$131$ Notes Receivable

$132$ Interest Receivable

$141$ Inventory

$145$ Office Supplies

$151$ Prepaid Insurance

$181$ Land

$191$ Buildings

$192$ Accumulated Depreciation$-$Buildings

LIABILITIES

$210$ Accounts Payable

$221$ Notes Payable

$226$ Interest Payable

$231$ Cash Dividends Payable

$241$ Salaries Payable

$261$ Mortgage Note Payable

EQUITY

$236$ Stock Dividends Distributable

$311$ Common Stock

$312$ Paid$-$In Capital in Excess of Par$-$Common Stock

$315$ Treasury Stock

$321$ Preferred Stock

$322$ Paid$-$In Capital in Excess of Par$-$Preferred Stock

$331$ Paid$-$In Capital from Sale of Treasury Stock

$340$ Retained Earnings

$351$ Cash Dividends

$352$ Stock Dividends

REVENUE

$410$ Sales

$610$ Interest Revenue

EXPENSES

$510$ Cost of Goods Sold

$515$ Credit Card Expense

$520$ Salaries Expense

$531$ Advertising Expense

$532$ Delivery Expense

$533$ Selling Expenses

$534$ Rent Expense

$535$ Insurance Expense

$536$ Office Supplies Expense

$537$ Organizational Expenses

$561$ Depreciation Expense$-$Buildings

$590$ Miscellaneous Expense

$710$ Interest Expense

General Journal

Journalize the two entries to record the transactions summarized in the trial balance.

General Journal Instructions

PAGE $1$

JOURNALACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

$1$

$2$

$3$

$4$

$5$

$6$

$7$