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Instructions Chart of Accounts General 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, 82,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $30 par (1,000,000 shares authorized, 402,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings $4,100,000 656,000 12,060,000 1,206,000 193,830,000 T 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 $3,301,000, and the land on which it is located, valued at $692,000, be acquired in accordance with preliminary negotiations by the issuance of 121,000 shares of common stock, (b) that 41,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $3,750,000. The plan was approved by the stockholders and accomplished by the following transactions:

On December 1 of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a cotlee processor: At the annual gtochhedders' meeting on March 31, the board of drectors presented a plan for modernixing and expanding plant operatons at a coat of approximately \$11, Co0, co0. The plan provided (a) that a bulding, valued at $3,301,000, and the land on which A is located, valued at 5692,000 , be acquired in accordance wth preliminary negobations by the issuarce of 121,000 shares of (b) that 41,000 shares of the unssued preferred stock be issued threugh an underwrhor, and (c) that the corporation bontow 13.760 .000 . The pian was approved by the stockholders and acoomplished by the folowina transactions: On December 1 of the current year, the following accounts and their balances uppear in the ledger of Latto Corp., a cotlee processor: A. the annual glochhelders' meetng on March 31, the board of drectors presented a plan for moderniang and expandng plant operatons at a cest of approximatey $11, Co0.,000. The plan provided (a) that a bulding. valued at $3,301,000, and the land on which A is located, valued at 5092,000 , be acquired in accordance whth proliminary negosians by the issuarce of 121,000 shares of comenon stock, (b) that 41,000 shares of the unssued preterred stock be issued thicugh an undererhor, and (c) that the corporason borrow $3,750,000. The plan was approved by the stockholders and acogmplished be the folowina transacticns

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