Issuing Common and Preferred Shares}

Tom Soong, a biochemistry professor, organized Biointernational Inc. earlier this year. The firm will manufacture antibiotics using gene-splicing technology. Biointernational's charter authorizes the firm to issue \(20,00010 \%\), \(\$ 50\) stated value preferred shares and 100,000 no par common shares. During the year, the firm engaged in the following transactions:

a. Issued 12,000 common shares to Tom Soong in exchange for \(\$ 170,000\) cash.

b. Issued 3,000 common shares to a potential customer for \(\$ 17\) per share.

c. Issued 1,000 preferred shares to a venture capital firm for \(\$ 60\) per share.

d. Issued 65 common shares to Susie Thomas, a local lawyer, in exchange for Susie's work in arranging for the firm's incorporation. Susie usually charges \(\$ 1,000\) for comparable work.

\section*{Required:}

Prepare a journal entry for each of these transactions.

\section*{Problem