On December 1 of the current year, the following accounts and their balances appear in the...

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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 $50 par (250,000 shares authorized, 80,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $35 par (1,000,000 shares authorized, 400,000 shares issued) Paid-in Capital in Excess of Par-Common Stock Retained Earings $4,000,000 560,000 14,000,000 1,200,000 180,000,000 At the annual stockholders' meeting on March 31, the board of directors presented a plan for modemizing and expanding plant operations at a cost of approximately $11,000,000. The plan provided (a) that a building, valued at $3.375,000, and the land on which it is located valued at $1,500,000, be acquired in accordance with preliminary negotiations by the issuance of 125,000 shares of common stock. (b) that 40,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation bomow $4,000,000 The plan was approved by the stockholders and accomplished by the following transactions Issued 125,000 shares of common stock in exchange for land and a building, according to the plan May 11 20 Issued 40,000 shares of prefered stock, receiving 552 per share in cash 31 Domowed $4,000,000 from Laurel National, giving a 5% mortgage note Required Joumalize the entries to record the May transactions Instructions General Joumal On D At the plan t 4 Issua 3 The d DATE DESCRIPTION PAGE 10 ACCOUNTING EQUATION JOURNAL POST REF DEBIT CREDIT Asers LABILITIES EQUITY 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 $50 par (250,000 shares authorized, 80,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $35 par (1,000,000 shares authorized, 400,000 shares issued) Paid-in Capital in Excess of Par-Common Stock Retained Earings $4,000,000 560,000 14,000,000 1,200,000 180,000,000 At the annual stockholders' meeting on March 31, the board of directors presented a plan for modemizing and expanding plant operations at a cost of approximately $11,000,000. The plan provided (a) that a building, valued at $3.375,000, and the land on which it is located valued at $1,500,000, be acquired in accordance with preliminary negotiations by the issuance of 125,000 shares of common stock. (b) that 40,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation bomow $4,000,000 The plan was approved by the stockholders and accomplished by the following transactions Issued 125,000 shares of common stock in exchange for land and a building, according to the plan May 11 20 Issued 40,000 shares of prefered stock, receiving 552 per share in cash 31 Domowed $4,000,000 from Laurel National, giving a 5% mortgage note Required Joumalize the entries to record the May transactions Instructions General Joumal On D At the plan t 4 Issua 3 The d DATE DESCRIPTION PAGE 10 ACCOUNTING EQUATION JOURNAL POST REF DEBIT CREDIT Asers LABILITIES EQUITY