PR $12-2$A Stock Transactions for Corporate Expansion Obj. $2$ 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, $$50$ par $(250,000$ shares authorized, $80,000$ shares issued$)$ $ $4,000,000$ Paid$-$In Capital in Excess of Par$$Preferred Stock $560,000$ Common Stock, $$35$ par $(1,000,000$ shares authorized, $400,000$ shares issued$)14,000,000$ Paid$-$In Capital in Excess of Par$$Common Stock $1,200,000$ Retained Earnings $180,000,000$ At the annual stockholders$$ meeting on March $31,$ the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $$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 borrow $$4,000,000.$ The plan was approved by the stockholders and accomplished by the following transactions: May $11.$ Issued $125,000$ shares of common stock in exchange for land and a building, according to the plan. $20.$ Issued $40,000$ shares of preferred stock, receiving $$52$ per share in cash. $31.$ Borrowed $$4,000,000$ from Laurel National, giving a $5\%$ mortgage note. Instructions Journalize the entries to record the May transactions.