Pearl.com, with an authorization of 50,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on May 1, the first day of operations. The trial balance at the close of the day follows:

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 trialbalance.

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Cash Land Buildings Preferred 4% Stock, $50 par Paid-In Capital in Excess of Par- Preferred Stock Common Stock, $100 par Paid-In Capital in Excess of Par-Common Stock 475,000 45,000 80,000 100,000 25,000 400,000 75,000 600,000 600,000