Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 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:

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.

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3,780,000 840,000 2,380,000 Cash Land Buildings Preferred 1% Stock, $80 par Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $30 par Paid-In Capital in Excess of Par-Common Stock. 2,800,000 420,000 3,600,000 180,000 7,000,000 7,000,000