Stock transaction for corporate expansion

Pulsar Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Pulsar Optics on April $30$ of the current year as follows:

Line Item Description Amount

Preferred $2\%$ Stock, $$75$ par $(500,000$ shares authorized, $120,000$ shares issued$)$ $$9,000,000$

Paid$-$In Capital in Excess of Par$$Preferred Stock $1,800,000$

Common Stock, $$100$ par $(900,000$ shares authorized, $240,000$ shares issued$)24,000,000$

Paid$-$In Capital in Excess of Par$$Common Stock $1,920,000$

Retained Earnings $48,000,000$

At the annual stockholders$$ meeting on August $5,$ the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $$22,200,000.$ The plan provided $($a$)$ that the corporation borrow $$8,600,000($b$)$ that $$65,000$ shares of the unissued preferred stock be issued through an underwriter, and $($c$)$ that a building, valued at $3,400,000$ and the land on which it is located, valued at $5,000,000$ be acquired in accordance with preliminary negotiations by the issuance of $80,000.$ shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions:

Date Transaction

Oct. $9.$ Borrowed $$8,600,000$ from St$.$ Peter City Bank, giving a $4\%$ mortgage note.

Oct. $17.$ Issued $65,000$ shares of preferred stock, receiving $$80$ per share in cash.

Oct. $28.$ Issued $80,000$ shares of common stock in exchange for land and a building, according to the plan.

Required:

Journalize the entries to record the October transactions.

If an amount box does not require an entry, leave it blank.

DateAccountDebitCredit

Oct. $9$

Cash

$8,600,000$

$0$

Mortgage Note Payable

$0$

$8,600,000$

Oct. $17$

Cash

$5,200,000$

$0$

Preferred Stock

$0$

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

$0$

Oct. $28$

Building

$3,400,000$

$0$

Land

$5,000,000$

$0$

Common Stock

$0$

$8,000,000$

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

$0$

$400,000$