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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, 77,000 shares issued)	$3,850,000
Paid-In Capital in Excess of ParPreferred Stock	616,000
Common Stock, $35 par (1,000,000 shares authorized, 419,000 shares issued)	14,665,000
Paid-In Capital in Excess of ParCommon Stock	1,676,000
Retained Earnings	190,700,000

At the annual stockholders

The owners of a corporation.

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 $3,422,000, and the land on which it is located, valued at $1,570,000, be acquired in accordance with preliminary negotiations by the issuance of 128,000 shares of common stock

The stock outstanding when a corporation has issued only one class of stock.

, (b) that 41,800 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $4,450,000. The plan was approved by the stockholders and accomplished by the following transactions:

May 11	Issued 128,000 shares of common stock in exchange for land and a building, according to the plan.
20	Issued 41,800 shares of preferred stock, receiving $55 per share in cash.
31	Borrowed $4,450,000 from Laurel National, giving a 6% mortgage note.

Journalize the entries to record the May transactions. Refer to the Chart of Accounts for exact wording of account titles.

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