Problem: Rainbow, Inc. 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:5. Rainbow, Inc. 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: Cash .............................................................3,780,000 Land ............................................................. 840,000 Buildings .......................................................2,380,000 Preferred 1% Stock, $80 par ....................................... 2,800,000 Paid-In Capital in Excess of Par-Preferred Stock ...................420,000 Common Stock, $30 par .......................................... 3,600,000 Paid-In Capital in Excess of Par-Common Stock ...................180,000 7,000,000 7,000,000