Stock transactions for corporate expansion Instructis Chart of Accounts Journal Instructions 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) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $35 par (1,000,000 shares authorized, 400,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings 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 valued at $39 per share, (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 20 31 $4,000,000 560,000 14,000,000 1,200,000 180,000,000 Issued 125,000 shares of common stock in exchange for land and a building, according to the plan. Issued 40,000 shares of preferred stock, receiving $52 per share in cash. Borrowed $4,000,000 from Laurel National, giving a 5% mortgage note. Check My Work 5 more Check My Work uses remaining. Previous N
On December 1 of the current year, the following accounts and their balances appear in the ledger of Latle Corp, a cotfee processor: At the annual stockholdess' meeting on March 31, the board of directors presented a plan for modernzing and expanding plant operations at a cost of approximately $11,000,000. The plan provided (a) that a buiding. valued at $3,375,000, and the land on which it is 10cated, valued at $1,500,000, be acquired in accordance with preiminary negotiations by the issuance of 125,000 shares of common stock valued at $39 per share, (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 accomptished 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 losued 40,000 shares of preferred stock, feceiving $52 per share in cash At the annual stockholderf' meeting on March 31, the board of directors presented a plan for modernicing and expanding plant operabions at a cost of approximalety $11,000,000 The plan provided (a) that a butding, 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 valued at $39 per shate, (b) that 40,000 shares of the unissued preferted sfock be issued through an underwiter, and (c) that the corporation borrow 54,000,000. The plan was approved by the stocktholders and accomplished by the following transactions: May 11 Issued 125,000 shares of common stock in exchange for land and a bulding. according to the flan 20 issued 40,000 shares of preferred stock, receiving $52 per share in cash 31 Borrowed 54,000,000 from Laurel National, giving a 5% morlgage note Required: hot use lines for joumel explanations Every ane on a joumal page is used for debit or credit entres. CNowjournala will automabcally indent a crodit entry when a credit amount is entered 
