I began working on this but I am struggling with preferred stock and common stoc

Question

I began working on this but I am struggling with preferred stock and common stock in the credit column. Need to submit tomorrow so need help asap! Thx!! :-)

Picasso Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Picasso Optics on November 30 of the current year as follows: Preferred 2% stock, $80 par (150,000 shares authorized, 75,000 shares issued)....................... $ 6,000,000 Paid-In Capital in Excess of par-preferred Stock............. 225,000 Common Stock, $100 par (500,000 shares authorized, 150,000 shares issued)..................... 15,000,000 Paid-In Capital in Excess of par-Common Stock............ 1,800,000 Retained Earnings........................ 50,250,000 At the annual stockholders’ meeting on December 10, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $ 15,500,000. The plan provided (a) that the corporation borrow $6,000,000, (b) that 45,000 shares of the un-issued preferred stock be issued through an underwriter, and (c) that a building, valued at $5,000,000, and the land on which it is located, valued at $487,500, be acquired in accordance with preliminary negotiations by the issuance of 52,500 shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions: Jan. 12. Borrowed $6,000,000 from Livingston National Bank, giving a 5% mortgage not 18. Issued 45,000 shares of preferred stock, receiving $85 per share in cash. 25. Issued 52,500 shares of common stock in exchange for land and a building, according to the plan. No other transactions occurred during January.

Instructions Journalize the entries to record the foregoing transactions.

Bookl Microsoft Excel Home Insert Cut Copy Format Painter Blu File Insert Page Layout Formulas ulas Data Re Review View AutoSum Calibri Wrap Text General Fill . $ % , 00.00 Conditional Format Cell Insert Delete Format Paste _ E:E Merge & Center Sort & Find & 2 Clear Filter Select Editing Formatting as Table Styles Clipboard Font Alignment Number Styles Cells C16 PICASSO OPTICS 2 3 Date Account Title Debit $ Credit $ 5 12-Jan Cash 6,000,000 Notes Payable (borrowing from Livingston National Bank) 6,000,000 18-Jan Cash 3,825,000 10 Preferred Stock Paid in Capital in excess of par Preferred Stock (Issue of preferred shares at premium of $6 per share) 12 13 14 25-Jan Building 15 16 5,000,000 487,500 Land Common Stock Paid in Capital in excess of par Common Stock (issuance of common stock at premiumof $1.5 per share in ex 17 change of land and building) 18 HI Sheet1Sheet2Sheet3 Ready | 10096 3:59 PM 4/20/2016

Explanation / Answer

Answer:

a) Cash Dr. 6,000,000

Notes payable Cr. 6,000,000

b) Cash (45,000 shares @ $85) Dr. 3,825,000

2% Preferred stock ($80) Cr. 3,600,000

Paid in capital in excess of par ($5) Cr. 225,000

c) Building Dr. 5,000,000

Land Dr. 487,500

Common stock (52,500 shares @ $100) Cr. 5,250,000

Paid in capital in excess of par Cr. 237,500

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