Pulsar Optics produces medical lasers for use in hospitals

The
Pulsar Optics produces medical lasers for use in hospitals. The accounts and their balances
appear in the ledger of Pulsar Optics on April 30 of the current year as follows: Preferred 1%
Stock, $120 par (300,000 shares authorized,36,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . $ 4,320,000Paid-In Capital in Excess of Par—Preferred Stock. . . . . . . . . 180,000
Common Stock, $15 par (2,000,000 shares authorized,1,400,000 shares issued) . . . . . . . . . . . .
. . . . . . . . . . . . .... 21,000,000Paid-In Capital in Excess of Par—Common Stock . . . . . ....
3,500,000Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 78,000,000At the annual
stockholders’ meeting on August 5, the board of directors presented a plan for modernizing and
expanding plant operations at a cost of approximately $9,000,000. The plan provided (a) That
the corporation borrow $1,500,000, (b) That 20,000 shares of the unissued preferred stock be
issued through an underwriter, and (c) That a building, valued at $4,150,000, and the land on
which it is located, valued at $800,000, be acquired in accordance with preliminary negotiations
by the issuance of 300,000 shares of common stock. The plan was approved by the
stockholders and accomplished by the following transactions:Oct. 9. Borrowed $1,500,000 from
St. Peter City Bank, giving a 4% mortgage note.17. Issued 20,000 shares of preferred stock,
receiving $126 per share in cash.28. Issued 300,000 shares of common stock in exchange for
land and a building, according to the plan.InstructionsJournalize the entries to record the
October transactions.View Solution:
Pulsar Optics produces medical lasers for use in hospitals The
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