Issuing Common and Preferred Shares}

Klaus Herrmann, a biochemistry professor, organized Bioproducts Inc. early this year. The firm will manufacture antibiotics using gene-splicing technology. Bioproducts' charter authorizes the firm to issue \(10,0007 \%\), \(\$ 70\) stated value preferred shares and an unlimited number of no par value common shares. During the year, the firm engaged in the following transactions.

a. Issued 50,000 common shares to Klaus Herrmann in exchange for \(\$ 550,000\) cash.

b. Issued 8,000 common shares to a potential customer for \(\$ 12\) per share.

c. Issued 4,000 preferred shares to a venture capital firm for \(\$ 85\) per share.

d. Issued 100 common shares to Margaret Robb, a local lawyer, in exchange for Margaret's work in arranging for the firm's incorporation. Margaret usually charges \(\$ 1,200\) for comparable work.
\section*{Required:}
Prepare a journal entry for each of these transactions.
Problem