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 (240,000 shares authorized, 86,000 shares issued)$4,300,000Paid-In Capital in Excess of Par-Preferred Stock516,000Common Stock, $30 par (1,000,000 shares authorized, 415,000 shares issued)12,450,000Paid-In Capital in Excess of Par-Common Stock1,245,000Retained Earnings184,170,000At 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 $3,360,000, and the land on which it is located, valued at $945,000, be acquired in accordance with preliminary negotiations by the issuance of 123,000 shares of common stock valued at $35 per share, (b) that 38,800 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $3,700,000. The plan was approved by the stockholders and accomplished by the following transactions:
May 11Issued 123,000 shares of common stock in exchange for land and a building, according to the plan.20Issued 38,800 shares of preferred stock, receiving $52 per share in cash.31Borrowed $3,700,000 from Laurel National, giving a 5% mortgage note.
Journalize the entries to record the May transactions. Refer to the Chart of Accounts for exact wording of account titles.